Balcilar, MehmetChang, ShinhyeGupta, RanganMiller, Stephen M.2018-01-252018-01Balcilar, 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.0033-5177 (print)1573-7845 (online)10.1007/s11135-017-0676-3http://hdl.handle.net/2263/63738This 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.en© Springer Science+Business Media B.V., part of Springer Nature 2018. The original publication is available at : http://link.springer.comjournal/11135.Income inequalityInflation rateSemiparametric instrumental variable estimationPostprint Article