scholarly journals Income inequality and macroeconomic activity: A study of the Peruvian case

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Juvert Alexi Huaranga
Keyword(s):  
Time Series ◽  
Income Inequality ◽  
Empirical Evidence ◽  
Unit Root ◽  
Statistical Properties ◽  
Financial Variables ◽  
Macroeconomic Activity ◽  
The Relationship

The relationship between income inequality and macroeconomic activity has been extensively investigated for many countries, with mixed evidence over the years. In this context, the aim of the paper is to study this relationship for the Peruvian economy with emphasis on the variables statistical properties. To that end, unit root time series bootstrap simulations are applied, additionally, social and financial variables are used to explain changes in inequality. As a result, no evidence of this relationship is found when variables time series properties are taken into account so new empirical evidence on this issue is critical in light of rising income inequality worldwide and its pervasive effects on society.

scholarly journals Forecasting Import Demand of Table Grapes: Empirical Evidence from Thailand

2020 ◽  
Vol 10 (2) ◽  
pp. 578-586
Author(s):  
Chalermpon Jatuporn ◽  
Patana Sukprasert ◽  
Siros Tongchure ◽  
Vasu Suvanvihok ◽  
Supat Thongkaew
Keyword(s):  
Time Series ◽  
Empirical Evidence ◽  
Unit Root ◽  
Moving Average ◽  
Unit Root Test ◽  
Import Demand ◽  
Forecasting Model ◽  
Autoregressive Integrated Moving Average ◽  
Table Grapes ◽  
Monthly Time Series

The purpose of this study is to forecast the import demand of table grapes of Thailand using monthly time series from January 2007 to April 2020. The ADF unit root test is used for stationarity checking, and seasonal autoregressive integrated moving average (SARIMA) is applied to forecast the import demand of table grapes. The results revealed that the integration of time series was in the first difference for non-seasonal and seasonal order. The best-fitted forecasting model was SARIMA(1,1,3)(2,1,0)12. The forecasted period for the next eight months showed the import demand of table grapes of Thailand that is slightly decreased by an average of 11.398 percent, with overall expected to decrease by an average of 15.218 percent in 2020.

scholarly journals An Empirical Evidence of International Fisher Effect in Bangladesh with India and China: A Time-Series Approach

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Kazi Ashraful Alam ◽  
Anisuzzaman Shuvo
Keyword(s):  
Time Series ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Fisher Effect ◽  
Nominal Interest Rates ◽  
Trading Partners ◽  
Time Series Approach ◽  
The Relationship ◽  
Casual Relationship

This paper is an attempt to examine the empirical evidence of International Fisher Effect (IFE) between Bangladesh and its two other major trading partners, China and India. The IFE uses interest rate differentials to explain why exchange rates change over time. A time series approach is considered to trace the relationship between nominal interest rates and exchange rates in these countries. The estimated value, by applying OLS, is used to determine the casual relationship between interest rates and exchange rates for quarterly data from 4th Quarter, 1995 to the 2nd Quarter, 2008. The empirical results suggest that there is a little correlation between exchange rates and interest rates differential for Bangladesh with China and Bangladesh with India, and the relationship between the variables is also not noteworthy for Bangladesh. Further, the trends advocate that the forecasting of exchange rates with the hypothesis of IFE is not realistic for these countries.

An Econometric Analysis of the Links Between Income Inequality and Economic Growth

2009 ◽  
pp. 130
Author(s):  
Yohannes G. Hailu ◽  
Tesfa G. Gebremedhin ◽  
Randall W. Jackson
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Empirical Evidence ◽  
Growth Model ◽  
Capita Income ◽  
Regional Growth ◽  
County Level ◽  
Income Inequalities ◽  
Per Capita ◽  
The Relationship

This study investigates temporal demographic changes and income inequalities, and more importantly the relationship between income inequality and economic growth inWest Virginia. Departing from earlier studies, a regional growth model is utilized and empirically tested using county level West Virginia data (1990-2000). Results suggest that per-capita income change is positively related to population and employment changes but negatively related to income inequality. This empirical evidence indicates that higher income inequality can potentially hinder economic growth.

scholarly journals INTRODUCTION TO TIME-VARYING MODELING WITH MACROECONOMIC AND FINANCIAL DATA

2012 ◽  
Vol 16 (S2) ◽  
pp. 167-175 ◽  
Author(s):  
Fredj Jawadi
Keyword(s):  
Time Series ◽  
Time Variation ◽  
Moving Average ◽  
Statistical Properties ◽  
Financial Data ◽  
Time Varying ◽  
Arch Model ◽  
Financial Variables ◽  
Short And Long Term

The dynamics of macroeconomic and financial series has evolved swiftly and asymmetrically since the end of the 1970s, and their statistical properties have also changed over time, suggesting complex relationships between economic and financial variables. The transformations can be explained by considerable changes in householder's behavior, market structures, and economic systems and by the alternation of exogenous shocks and financial crises that have affected the economic cycle, with significant evidence of time variation in the major economic variables. Hence, there is a need for new econometric protocols to take such changes into consideration. The introduction of ARMA (autoregressive moving average models) by Box and Jenkins (1970) led to the development of time-series econometrics, which had a major impact on the conceptual analysis of economic and financial data. This type of modeling offered a transition from a static setup to a new modeling process that reproduces the time-varying features of macroeconomic and financial series. However, the ARMA modeling system retains the constancy of the first and second moments, limits the phases of a cycle to symmetrical instances, and only reproduces the dynamics of stationary variables. It thus fails to adequately reproduce the nonstationary relationships between major economic and financial variables. Abrupt changes in economies and financial systems have given evidence of nonstationary series whose statistical properties are also time-varying, making it necessary to develop new econometric tools to capture the time variation of economic and financial series in the mean and in the variance, and to apprehend their dynamics in the short and long term. Among the most important and influential studies in the 1980s' econometrics literature were therefore those that dealt with the introduction of the ARCH (autoregressive conditional heteroskedasticity) model by Engle (1982) and the cointegration theory by Engle and Granger (1987). The ARCH model, which focuses on the time-varying features of volatility structure, was a major breakthrough, as it highlighted the importance of the second moment of time series, while the cointegration framework enabled the short- and long-term dynamics of nonstationary variables to be modeled.

Income Inequality, Economic Growth and Carbon Dioxide Emissions Nexus: Empirical Evidence from Ethiopia

2021 ◽  
Author(s):  
Shemelis Kebede Hundie
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Unit Root ◽  
Carbon Dioxide Emissions ◽  
Unit Root Test ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Low Carbon ◽  
Long Run ◽  
The Relationship

Abstract The relationship between income inequality, economic growth and CO2 emissions is ambiguous both theoretically and empirically. Hence, this study examines the link between income inequality and CO2 emissions in Ethiopia for time span covering 1979–2014 using ARDL bounds test and DOLS approach to cointegration. The Zivot-Andrews unit root test and Clemente-Montanes-Reyes unit root test reveal that some of the variables under consideration are stationary at level while others become stationary after first differencing. Both ARDL and DOLS approaches confirm that there is a long-run relationship among the series during the study period. The long-run empirical results show that a 1% increase in economic growth accounts for a 1.05% increase in CO2 emissions while a 1% increase in economic growth squared reduces CO2 emissions by 0.11%. The U-test result reveals that the relationship between CO2 emissions and economic growth confirms existence of the Environmental Kuznets Curve hypothesis. The effect of income inequality on CO2 is not robust to alternative estimation techniques; it is statistically insignificant under the ARDL estimation, but DOLS estimates show that a 1% increase in income inequality increases CO2 emissions by 0.21% in the long-run during the study period. In the long-run a 1% rise in urbanization, population size, energy intensity and industrialization each positively contribute to environmental degradation in Ethiopia by 0.38%, 0.22%, 0.07% and 0.11% respectively. Results from the Toda-Yamamoto Granger causality show a bidirectional causal relationship between CO2 emissions and all other variables except economic growth. CO2 emissions granger causes economic growth with no feedback effect. Results suggested important policy implications in the light of achieving its 2030 targets of low-carbon economy for Ethiopia.

scholarly journals Financial development and income inequality

2020 ◽  
Vol 7 (54) ◽  
pp. 84-100
Author(s):  
Ewa Weychert
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
Added Value ◽  
Empirical Literature ◽  
Financial Variables ◽  
Short Run ◽  
Fixed Panel ◽  
The Impact ◽  
The Relationship

AbstractThis paper analyses the influence of financial development on income inequality. Throughout this work, one may find the overview of theoretical and empirical literature as well as the empirical model using fixed panel data method. This research paper tries to disentangle the opposing views on the relationship between finance and income distribution, by evaluating the impact of the different dimensions of financial development on the level of income inequality. The important added value of this research is the usage of quintiles of income distribution as a dependent variable that may help to recognise the effect of financial development on the poorest and richest. Another novelty of the paper is the consideration of the effects of financial variables on Gini coefficient in the long and short run. The main results of the analysis using dataset from 2003 to 2014 indicate that financial access decreases income inequality.

scholarly journals An Empirical Evidence of Fisher Effect in Bangladesh: A Time-Series Approach

2019 ◽  
Author(s):  
Gazi Salah Uddin ◽  
Md. Mahmudul Alam ◽  
Kazi Ashraful Alam
Keyword(s):  
Time Series ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Unit Root Test ◽  
Expected Inflation ◽  
Real Risk ◽  
Time Series Approach ◽  
Monthly Sample ◽  
Risk Free Rate ◽  
The Relationship

This paper is an attempt to trace the relationship between interest rates and rates of inflation in the economy of Bangladesh. In view of this, a time series approach is considered to examine the empirical evidence of Fisher’s effect in the country. By applying OLS and Unit Root test, the estimated value is used to determine the casual relationship between interest rates and inflation for the monthly sample period of August 1996 to December 2003. The empirical results suggest that there does not exist any co-movement of inflation with interest rates and the relationship between the variables is also not significant for Bangladesh. Further, the trends advocate that the inflation premium, equal to expected inflation that investors add to real-risk free rate of return, is ineffective in the country.

scholarly journals ANALISIS KAUSALITAS INFLASI, KETIMPANGAN PENDAPATAN, DAN PERTUMBUHAN EKONOMI DI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 701
Author(s):  
Rifki Ihsan ◽  
Hasdi Aimon ◽  
Alpon Satrianto
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Income Inequality ◽  
Granger Causality ◽  
Vector Autoregression ◽  
Granger Causality Test ◽  
Analysis Model ◽  
Causality Test ◽  
The Relationship

The aim of this study is to analyze the relationship between Inflation, Income Inequality and Economic Growth in Indonesia. The type of this research is associative and analysisdescriptive. The data used in this reseach is secondary of time series from 1986 to 2016 obtained from Word Bank. Analysis model using the Vector Autoregression (VAR). Theanalysis initially used the Vector Autoregression (VAR), because the stationer variabel on first diferent range, then this study continued byVector Error CorrectionModel (VECM) and Granger Causality Test. The result of this study show (1) There is nocausality between Inflation affects to Income Inequality, (2) There is no causality between Inflation affects to Economic Growth, (3) There is causality in the direction in which Income Inequality affects to Economic Growth. In addition, because of the prevalence of income in Indonesia, this will increase economic growth in Indonesia. Keywords:Inflation, Income Inequality, Economic Growth

Income inequality and the cost of recessions

2021 ◽  
Vol 71 (1) ◽  
pp. 85-97
Author(s):  
Mostafa Shahee ◽  
Glenn P. Jenkins
Keyword(s):  
Income Inequality ◽  
Business Cycle ◽  
Empirical Evidence ◽  
Gini Index ◽  
High Income ◽  
Income Distributions ◽  
The Business Cycle ◽  
The Cost ◽  
The Relationship

AbstractThis study empirically examines the relationship between the severity of recessions experienced by countries and their income distributions. The analysis is carried out for 28 higher middle- and high-income countries between 1970 and 2013. The empirical evidence derived from the changes in the Gini-index suggests that a greater degree of income inequality increases the cumulative loss of GDP inflicted by recessions. The increased cost emerges from both a longer duration and a deeper amplitude for the contractionary phase of the business cycle.

scholarly journals Rethinking the Income Inequality and Financial Development Nexus. A Study of Nine OECD Countries

2020 ◽  
Vol 12 (13) ◽  
pp. 5449
Author(s):  
Marta de la Cuesta-González ◽  
Cristina Ruza ◽  
José M. Rodríguez-Fernández
Keyword(s):  
Income Inequality ◽  
Global Financial Crisis ◽  
Panel Data Analysis ◽  
Oecd Countries ◽  
Explanatory Variables ◽  
Financial Variables ◽  
Financial Depth ◽  
Sustainable Finance ◽  
The Global Financial Crisis ◽  
The Relationship

Sustainable finance seeks to increase the contribution of finance to sustainable and inclusive growth. The global financial crisis of 2008 provoked the return of inequality in advanced countries to levels typical of a century ago. The aim of this paper is to empirically analyze the relationship between finance and income inequality for a group of nine OECD countries over the pre-crisis and post-crisis periods (2000–2015). The model proposed in this study simultaneously considers two explanatory variables for measuring financial depth (credit provision and capital markets) and a new multidimensional variable to measure the financial system’s resilience (a composite indicator), and conducts panel data analysis. The empirical results confirm that in terms of financial depth, the "too much finance hypothesis" holds. We also find that financial system’s resilience helps alleviate existing income inequality and that income inequality appears higher in liberal market economies than in coordinated economies. These results encourage policymakers to look beyond traditional public redistribution interventions and to pay attention to other financial variables related to the financialization process, the behavior of financial intermediaries, and the specific environment in which they operate.

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