Income Inequality and Economic Growth in the U.S.:A Panel Cointegration Approach
Mark Frank ()
No 503, Working Papers from Sam Houston State University, Department of Economics and International Business
The purpose of this paper is to examine the empirical relationship between income inequality and economic growth using U.S. state-level data during the post-war period. We construct a sample of 48 U.S. states with annual observations over the period 1945 to 2001. With this sample the number of time series observations is relatively large and of the same order of magnitude as the number of groups. This allows for the exploitation of new cointegrated dynamic panel data techniques. Our findings indicate that the long-run relationship between inequality and growth is negative in nature, though this negative relationship appears to be larger for low-income states.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
http://www.shsu.edu/academics/economics-and-intern ... p_series/wp05-03.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:shs:wpaper:0503
Access Statistics for this paper
More papers in Working Papers from Sam Houston State University, Department of Economics and International Business Contact information at EDIRC.
Bibliographic data for series maintained by Christian Raschke ().