Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Social and Behavioral Sciences
Growth Volatility And Inequality In The U.S.: A Wave Analysis, Shinhye Chang, Rangan Gupta, Stephen M. Miller, Mark E. Wohar
Growth Volatility And Inequality In The U.S.: A Wave Analysis, Shinhye Chang, Rangan Gupta, Stephen M. Miller, Mark E. Wohar
Economics Faculty Publications
This study applies wavelet coherency analysis to explore the relationship between the U.S. economic growth volatility, and income and wealth inequality measures over the period 1917 to 2015 and 1962 to 2014. We consider the relationship between output volatility during positive and negative growth scenarios. Wavelet analysis simultaneously examines the correlation and causality between two series in both the time and frequency domains. Our findings provide evidence of positive correlation between the volatility and inequality across high (short-run)- and low-frequencies (long-run). The direction of causality varies across frequencies and time. Strong evidence exists that volatilities lead inequality at low-frequencies across …