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Income Inequality and Economic Freedom in the U.S. States

Author

Listed:
  • Nathan J. Ashby

    (Department of Economics, West Virginia University)

  • Russell S. Sobel

    (Department of Economics, West Virginia University)

Abstract

This paper examines the impact of economic freedom on income inequality using cross-sectional data for U.S. states. While previous research has explored this relationship internationally, the results have been conflicting. In addition, while it seems obvious that the large institutional differences across countries will impact income inequality, it isn’t so obvious that the smaller variation in policies among U.S. states can have a measurable impact. Can improvements in income inequality be used as a justification for marginal pro-market policy reforms at the state level, or is this argument applicable only to national-level institutional reforms?

Suggested Citation

  • Nathan J. Ashby & Russell S. Sobel, 2006. "Income Inequality and Economic Freedom in the U.S. States," Working Papers 06-08 Classification-, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:06-08
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    References listed on IDEAS

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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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