EconPapers    
Economics at your fingertips  
 

Causality between Output and Income Inequality across US States: Evidence from a Heterogeneous Mixed Panel Approach

Shinhye Chang (), Hsiao-Ping Chu (), Rangan Gupta () and Stephen Miller ()
Additional contact information
Shinhye Chang: Department of Economics, University of Pretoria, Pretoria, South Africa
Hsiao-Ping Chu: Department of Business Administration, Ling-Tung University, Taichung, Taiwan

No 201706, Working Papers from University of Pretoria, Department of Economics

Abstract: In this paper, we investigate the causal relationship between output, proxied by personal income, and income inequality in a panel data of 48 states from 1929 to 2012. We employ the causality methodology proposed by Emirmahmutoglu and Kose (2011), as it incorporates possible slope heterogeneity and cross-sectional dependence in a multivariate panel. Evidence of bi-directional causal relationship exists for several inequality measures -- the Atkinson Index, Gini Coefficient, the Relative Mean Deviation, Theil’s entropy Index and Top 10% -- but no evidence of the causal relationship for the Top 1% measure. Also, this paper finds state-specific causal relationships between personal income and inequality.

Keywords: Income inequality; Panel data; Personal Income; Granger causality (search for similar items in EconPapers)
JEL-codes: C33 D31 D63 (search for similar items in EconPapers)
Date: 2017-01
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Causality between Output and Income Inequality across U.S. States: Evidence from a Heterogeneous Mixed Panel Approach (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201706

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().

 
Page updated 2019-11-20
Handle: RePEc:pre:wpaper:201706