A new look at the trickle-down effect in the united states economy

Yuexing Lan and Charles Hegji ()
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Charles Hegji: Auburn University Montgomery

Economics Bulletin, 2009, vol. 29, issue 3, 1743-1748

Abstract: This paper is a further investigation of the trickle-down theory. In addition to using more recent data, we use a methodology that examines some questions not previously addressed in the literature. The results suggest that an increase in wage leads to a more equal income distribution. The findings also indicate that there is no ¡°trickle-down¡± from proprietors¡¯ income and corporate profits to lower income group.

JEL-codes: I3 (search for similar items in EconPapers)
Date: 2009-07-23
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