Economic freedom and income inequality: further evidence from 58 countries in the long-run

Nicholas Apergis ()

Financial Theory and Practice, 2015, vol. 39, issue 4, 349-370

Abstract: This study employs panel data for 58 countries from 1980-2010, to investigate the dynamic relationship between economic freedom and income inequality. Both linear and non-linear (Panel Smooth Threshold Regression) cointegration estimation methods are used to identify a long-run equilibrium relationship between the overall economic freedom index and its components, and income inequality. The linear long-run parameter estimates for the entire panel of countries show that the association is negative, while the non-linear long-run parameter estimates indicate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point the association is positive.

Keywords: economic freedom; Economic Freedom Index; income distribution (search for similar items in EconPapers)
JEL-codes: O15 O43 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ipf:finteo:v:39:y:2015:i:4:p:349-370

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