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What do panel data say on inequality and GDP? New evidence at US state-level

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  • Costantini, Mauro
  • Paradiso, Antonio

Abstract

This paper investigates the empirical relationship between inequality and per capita GDP for the US using panel data for 50 states over the period 1960–2015. The paper uses new recently released data for inequality and a novel panel estimator with interactive fixed effects. The empirical results seem to suggest the existence of a S-shaped relationship between inequality and per capita GDP.

Suggested Citation

  • Costantini, Mauro & Paradiso, Antonio, 2018. "What do panel data say on inequality and GDP? New evidence at US state-level," Economics Letters, Elsevier, vol. 168(C), pages 115-117.
    • Handle: RePEc:eee:ecolet:v:168:y:2018:i:c:p:115-117
    DOI: 10.1016/j.econlet.2018.04.019
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    References listed on IDEAS

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    8. Mark W. Frank, 2009. "Inequality And Growth In The United States: Evidence From A New State‐Level Panel Of Income Inequality Measures," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 55-68, January.
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    10. Yang, Yiwen & Greaney, Theresa M., 2017. "Economic growth and income inequality in the Asia-Pacific region: A comparative study of China, Japan, South Korea, and the United States," Journal of Asian Economics, Elsevier, vol. 48(C), pages 6-22.
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    Citations

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    Cited by:

    1. José Alves & José Carlos Coelho & Alexandre Roxo, 2022. "How economic growth impinges on income inequalities," Working Papers REM 2022/0254, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    2. Ke Zhang & Hao Sun & Xiangyu Li, 2022. "Aging Population Spatial Distribution Discrepancy and Impacting Factor," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    3. Diego Martínez-Navarro & Ignacio Amate-Fortes & Almudena Guarnido-Rueda, 2020. "Inequality and development: is the Kuznets curve in effect today?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 703-735, October.
    4. Sayed Adham, 2020. "Is there a Kuznets Curve in the Arab Region? An Empirical Investigation," Review of Middle East Economics and Finance, De Gruyter, vol. 16(2), pages 1-17, August.

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    More about this item

    Keywords

    Inequality; GDP; panel data; interactive fixed effects;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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