Mickey Mouse numbers and inequality research in developing countries

Abstract

The usage of unreliable statistics is common in development economics, particularly in research on income distributional issues. It is widely believed, for example, that the distribution of income in Taiwan equalised dramatically between the early 1950s and about 1980. Under close examination it is clear much of the evidence advanced is flawed, the treatment of data by a number of analysts is puzzling, and links between export‐orientation and inequality trends are flimsy. It is argued that economists should be far more concerned about data problems in their research.