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What do panel data say on inequality and GDP? New evidence at US state-level

Mauro Costantini () and Antonio Paradiso

Economics Letters, 2018, vol. 168, issue C, 115-117

Abstract: This paper investigates the empirical relationship between inequality and per capita GDP for the US using panel data for 50 states over the period 1960–2015. The paper uses new recently released data for inequality and a novel panel estimator with interactive fixed effects. The empirical results seem to suggest the existence of a S-shaped relationship between inequality and per capita GDP.

Keywords: Inequality; GDP; panel data; interactive fixed effects (search for similar items in EconPapers)
JEL-codes: C33 O15 R10 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:ecolet:v:168:y:2018:i:c:p:115-117