Macroeconomic Determinants of the Income Shares of the Very Highest Income Groups
AbstractBy nature, people are guided by self-interests. Although all income groups have a stake in economic matters, the highest income groups are likely to have a much greater say in affecting the macro economy. Identifying the interests of higher income groups with regard to the economy is, therefore, important. It suggests where the effective energies of these potent groups are likely to be channeled, and allows one to assess the extent to which their objectives are in tune with the agenda of the broader society. This study uses the Phillips-Hansen fully modified OLS procedure to investigate the interrelationship between four key macroeconomic variables and the seven topmost income shares. We find that the extent of trade, inflation rate, unemployment, and real interest rate are highly significant in explaining the shares of the highest income groups in the United States.
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Bibliographic InfoArticle provided by Review of Applied Economics in its journal Review of Applied Economics.
Volume (Year): 1 (2005)
Issue (Month): 1 ()
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Income Inequality; inflation rate; unemployment rate; Consumer/Household Economics; Labor and Human Capital; Public Economics; Research Methods/ Statistical Methods; A10;
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- A10 - General Economics and Teaching - - General Economics - - - General
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