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Trends, Breaks and Persistence in Top Income Shares

Author

Listed:
  • Atanu Ghoshray

    (Department of Economics, Newcastle University Business School, UK)

  • Issam Malki

    (Department of Finance and Accounting, University of Westminster; London, UK)

  • Javier Ordóñez

    (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

We examine the top income share data of a sample of countries to empirically examine for the presence of structural breaks, linear trends and persistence. The analysis of the data is carried out separately for each individual country using novel econometric procedures that are both appropriate and robust. Various theories have been put forward to explain the causes of structural breaks in long run data, such as the introduction of assembly lines from the time of World War I and the ICT revolution. What we find is that there is no clear evidence that Anglo Saxon countries have similar trends as opposed to Nordic, Continental European or other Asian countries. The results are varied and no clear conclusion can be made. Further, the top income share data is found to be highly persistent, suggesting that shocks to the data are likely to be long-lived.

Suggested Citation

  • Atanu Ghoshray & Issam Malki & Javier Ordóñez, 2020. "Trends, Breaks and Persistence in Top Income Shares," Working Papers 2020/12, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2020/12
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    More about this item

    Keywords

    Unit Roots; Top Income Shares; Structural Breaks;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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