Partisan Conflict and Income Inequality in the United States: A Nonparametric Causality-in-Quantiles Approach

Mehmet Balcilar, Seyi Akadiri, Rangan Gupta and Stephen Miller

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2019, vol. 142, issue 1, No 3, 65-82

Abstract: Abstract This paper examines the predictive power of a partisan conflict on income inequality. Our study contributes to the existing literature by using the newly introduced nonparametric causality-in-quantile testing approach to examine how political polarization in the United States affects several measures of income inequality and distribution overtime. The study uses annual time-series data between the periods 1917–2013. We find evidence in support of a dynamic causal relationship between partisan conflict and income inequality, except at the upper end of the quantiles. Our empirical findings suggest that a reduction in partisan conflict will lead to a reduction in our measures of income inequality, but this requires that inequality is not exceptionally high.

Keywords: Partisan conflict; Income inequality; Quantile causality (search for similar items in EconPapers)
JEL-codes: C22 O15 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11205-018-1906-3

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