The variable Iny is the log of real GDP per capita so that the left-hand side of equation [1] approximates five-year growth in a country. On the right hand-side, Ineq is a summary measure of inequality, per capita GDP (yc-i) is the standard control for convergence, and the vector X contains a minimum set of controls for human and physical capital (see Annex 2.A1 for a detailed description of variables and sources). Using panel data allows accounting for country and time fixed effects (//c and pi). The country dummies are included to control for time-invariant omitted-variable bias, and the period dummies are included to control for global shocks, which might affect aggregate growth in any period but are not otherwise captured by the explanatory variables.