The relationship between the inflation rate and inequality across U.S. states : a semiparametric approach
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Date
Authors
Balcilar, Mehmet
Chang, Shinhye
Gupta, Rangan
Miller, Stephen M.
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Abstract
This paper uses a cross-state panel for the United States over the 1976–2007 period to assess the relationship between income inequality and the inflation rate. Employing a semiparametric instrument variable (IV) estimator, we find that the relationship depends on the level of the inflation rate. A positive relationship occurs only if the states exceed a threshold level of inflation rate. Below this value, inflation rate lowers income inequality. The results suggest that a nonlinear relationship exists between income inequality and the inflation rate.
Description
Keywords
Income inequality, Inflation rate, Semiparametric instrumental variable estimation
Sustainable Development Goals
Citation
Balcilar, M., Chang, S., Gupta, R. et al. The relationship between the inflation rate and inequality across U.S. states: a semiparametric approach. Quality & Quantity (2018). https://doi.org/10.1007/s11135-017-0676-3. NYP.