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Income Inequality: A State-by-State Complex Network Analysis

Author

Listed:
  • Periklis Gogas

    (Department of Economics Democritus University of Thrace, Komotini, 69100, Greece)

  • Rangan Gupta

    (Department of Economics, University of Pretoria)

  • Stephen M. Miller

    (Department of Economics, University of Nevada, Las Vegas, Las Vegas, Nevada, 89154-6005, USA)

  • Theophilos Papadimitriou

    (Department of Economics Democritus University of Thrace, Komotini, 69100, Greece)

  • Georgios Antonios Sarantitis

    (Department of Economics Democritus University of Thrace, Komotini, 69100, Greece)

Abstract

This study performs a long-run, inter-temporal analysis of income inequality in the U.S. for the period 1916-2012. We use a) descriptive analysis to examine the evolution of inequality through time and b)complex network tools, more specifically an optimization technique called the Threshold-Minimum Dominating Set,which provides new insighton the pattern income inequality across the U.S. states. Several empirical findings emerge. First,inequality displays a heterogeneous evolution across the four focal sub-periods. Second, the results differ between the inequality measures examined, namely the Top 1% share of income and the Gini coefficient. Finally, groups of similarly behaving states (in terms of inequality) are identified that the U.S. authorities can use to investigate the causes of inequality within the U.S. and implement the appropriate policy interventions.

Suggested Citation

  • Periklis Gogas & Rangan Gupta & Stephen M. Miller & Theophilos Papadimitriou & Georgios Antonios Sarantitis, 2015. "Income Inequality: A State-by-State Complex Network Analysis," Working Papers 201534, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201534
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    Cited by:

    1. Mehmet Balcilar & Seyi Saint Akadiri & Rangan Gupta & Stephen M. Miller, 2019. "Partisan Conflict and Income Inequality in the United States: A Nonparametric Causality-in-Quantiles Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 65-82, February.
    2. Mehmet Balcilar & Seyi Saint Akadiri & Rangan Gupta & Stephen M. Miller, 2017. "Partisan Conflict and Income Distribution in the United States: A Nonparametric Causality-in-Quantiles Approach," Working Papers 201741, University of Pretoria, Department of Economics.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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