Income inequality and the business cycle: A threshold cointegration approach
AbstractThis paper investigates the impact of various socio-economic variables on various cohorts of the income distribution. We use asymmetric cointegration tests to show that unemployment and immigration shocks have real impacts on income inequality. In addition, using threshold test results we are able to show that positive and negative shocks to the economy do not have symmetric effects nor do the impacts of these shocks impact income quintiles uniformly.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Systems.
Volume (Year): 33 (2009)
Issue (Month): 3 (September)
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Income inequality Granger causality Asymmetric cointegration;
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