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Articles 1 - 5 of 5
Full-Text Articles in Income Distribution
Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence, Furkan Emirmahmutoglu, Rangan Gupta, Stephen M. Millter, Tolga Omay
Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence, Furkan Emirmahmutoglu, Rangan Gupta, Stephen M. Millter, Tolga Omay
Economics Faculty Publications
This paper re‐examines the stochastic properties of U.S. state real per capita personal income, using new panel unit‐root procedures. The new developments incorporate non‐linearity, asymmetry, and cross‐sectional correlation within panel‐data estimation. Including nonlinearity and asymmetry finds that 43 states exhibit stationary real per capita personal income whereas including only nonlinearity produces 42 states that exhibit stationarity. Stated differently, we find that two states exhibit nonstationary real per capita personal income when considering nonlinearity, asymmetry, and cross‐sectional dependence.
Partisan Conflict And Income Inequality In The United States: A Nonparametric Causality-In-Quantiles Approach, Mehmet Balcilar, Seyi Saint Akadiri, Rangan Gupta, Stephen M. Miller
Partisan Conflict And Income Inequality In The United States: A Nonparametric Causality-In-Quantiles Approach, Mehmet Balcilar, Seyi Saint Akadiri, Rangan Gupta, Stephen M. Miller
Economics Faculty Publications
This paper examines the predictive power of a partisan conflict on income inequality. Our study contributes to the existing literature by using the newly introduced nonparametric causality-in-quantile testing approach to examine how political polarization in the United States affects several measures of income inequality and distribution overtime. The study uses annual time-series data between the periods 1917–2013. We find evidence in support of a dynamic causal relationship between partisan conflict and income inequality, except at the upper end of the quantiles. Our empirical findings suggest that a reduction in partisan conflict will lead to a reduction in our measures of …
Convergence In Income Inequality: Further Evidence From The Club Clustering Methodology Across States In The U.S., Nicholas Apergis, Christina Christou, Rangan Gupta, Stephen M. Miller
Convergence In Income Inequality: Further Evidence From The Club Clustering Methodology Across States In The U.S., Nicholas Apergis, Christina Christou, Rangan Gupta, Stephen M. Miller
Economics Faculty Publications
This paper contributes to the sparse literature on inequality convergence by empirically testing convergence across states in the U.S. This sample period encompasses a series of different periods that the existing literature discusses -- the Great Depression (1929–1944), the Great Compression (1945–1979), the Great Divergence (1980-present), the Great Moderation (1982–2007), and the Great Recession (2007–2009). This paper implements the relatively new method of panel convergence testing, recommended by Phillips and Sul (2007). This method examines the club convergence hypothesis, which argues that certain countries, states, sectors, or regions belong to a club that moves from disequilibrium positions to their club-specific …
A Dynamic Model Of The Choice Of Technology In Economic Development, Haiwen Zhou, Ruhai Zhou
A Dynamic Model Of The Choice Of Technology In Economic Development, Haiwen Zhou, Ruhai Zhou
Economics Faculty Publications
In this overlapping-generations model, there is unemployment in the manufacturing sector. Manufacturing firms engage in oligopolistic competition and choose technologies to maximize profits. With capital as a fixed cost of production, increasing returns in the manufacturing sector exist. In the unique steady state, first, when individuals become more patient, the savings rate increases while the level of an individual’s income decreases. Second, an increase in population or percentage of income spent on manufactured goods does not change steady-state technology while the level of an individual’s income decreases. Third, an increase in the wage rate leads manufacturing firms to choose more …
Working Capital Requirement And The Unemployment Volatility Puzzle, Tsu-Ting Tim Lin
Working Capital Requirement And The Unemployment Volatility Puzzle, Tsu-Ting Tim Lin
Economics Faculty Publications
Shimer (2005) argues that a search and matching model of the labor market in which wage is determined by Nash bargaining cannot generate the observed volatility in unemployment and vacancy in response to reasonable labor productivity shocks. This paper examines how incorporating monopolistically competitive firms with a working capital requirement (in which firms borrow funds to pay their wage bills) improves the ability of the search models to match the empirical fluctuations in unemployment and vacancy without resorting to an alternative wage setting mechanism. The monetary authority follows an interest rate rule in the model. A positive labor productivity shock …