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Income Inequality: A State-by-State Complex Network Analysis

Periklis Gogas (), Rangan Gupta (), Stephen Miller (), Theophilos Papadimitriou () and Georgios Sarantitis ()
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Periklis Gogas: Department of Economics Democritus University of Thrace, Komotini, 69100, Greece

No 201534, Working Papers from University of Pretoria, Department of Economics

Abstract: This study performs a long-run, inter-temporal analysis of income inequality in the U.S. for the period 1916-2012. We use a) descriptive analysis to examine the evolution of inequality through time and b)complex network tools, more specifically an optimization technique called the Threshold-Minimum Dominating Set,which provides new insighton the pattern income inequality across the U.S. states. Several empirical findings emerge. First,inequality displays a heterogeneous evolution across the four focal sub-periods. Second, the results differ between the inequality measures examined, namely the Top 1% share of income and the Gini coefficient. Finally, groups of similarly behaving states (in terms of inequality) are identified that the U.S. authorities can use to investigate the causes of inequality within the U.S. and implement the appropriate policy interventions.

Pages: 26 pages
Date: 2015-06
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Working Paper: Income Inequality: A State-by-State Complex Network Analysis (2016) Downloads
Working Paper: Income Inequality: A State-by-State Complex Network Analysis (2016) Downloads
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