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Modeling of Income Inequality of the Population with Spatial Dependence in Russia
[Моделирование Неравенства Доходов Населения С Учетом Пространственной Зависимости В Рф]

Author

Listed:
  • Tatiana Yu. Ivakhnenko

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

The paper tested the existence of spatial dependence in the model of income inequality for 77 regions of the Russian Federation in the period 2004–2020. For this purpose, cross-section and panel models were evaluated with the inclusion of spatial lags in the dependent variable (SAR), as well as errors (SEM) of the income inequality model. The results of the estimation of both cross-section and panel models with region fixed effects indicate the existence of a positive spatial correlation both in the level and in the shocks of income inequality. The main conclusion is that the level of income inequality in a given region positively depends on the level and shocks of income inequality in neighboring regions. Interregional migration, transfers, and trade are considered as possible channels of this influence.

Suggested Citation

  • Tatiana Yu. Ivakhnenko, 2023. "Modeling of Income Inequality of the Population with Spatial Dependence in Russia [Моделирование Неравенства Доходов Населения С Учетом Пространственной Зависимости В Рф]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 7, pages 21-28, July.
    • Handle: RePEc:gai:recdev:r2355
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gini index; income inequality; spatial models; Russia’s regions;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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