Does Clientelism Affect Income Inequality? Evidence from Panel Data

The Relationship

This paper studies the determinants of income inequality in a panel of countries to provide empirical evidence to the relationship between income inequality and clientelism. Using different panel data techniques, especially group mean fully modified OLS estimator, and also allowing for control variables, cross-sectional heterogeneity and cross-sectional dependence, we find that in the long run, clientelism exerts a significant negative effect on income equality. The overall results of the study have implications for fiscal management strategies and political regime choice.

Wind Energy And CO2 Emissions: AMG Estimations For Selected Countries

10.21203/rs.3.rs-696494/v1 ◽

2021 ◽

Author(s):

Taner Güney ◽

Emrah Üstündağ

Keyword(s):

Energy Consumption ◽

Wind Energy ◽

Carbon Emissions ◽

Cross Sectional ◽

Long Run ◽

Negative Effect ◽

The Relationship ◽

Positive Effect

Abstract This study aims to analyze the relationship between wind energy consumption, coal energy consumption, globalization, economic growth and carbon emissions in a selected country group. This analysis was made with the data of 37 countries for the period 2000-2019. In order to examine the long-term relationship between the variables, the AMG method, which makes an estimation by considering the cross-sectional dependence and slope homogeneity, was used in the study. According to the long-term coefficient estimates of the cointegrated variables, wind energy consumption has a statistically significant and negative effect on carbon emissions in the long run. A 1% increase in wind energy consumption reduces carbon emissions by 0.018%. On the other hand, the globalization variable has a statistically significant and positive effect on carbon emissions in the long run. A 1% increase in globalization increases carbon emissions by 0.107%. These findings show the importance of wind energy consumption in reducing carbon emissions. For this reason, policies should be produced to increase wind energy consumption globally and necessary incentives should be provided.

The Impact of Income Inequality on Environmental Quality: A Sectoral-Level Analysis

10.21203/rs.3.rs-532156/v1 ◽

2021 ◽

Author(s):

Sedat Alataş ◽

Tuğba Akın

Keyword(s):

Income Inequality ◽

Carbon Emissions ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Cross Sectional ◽

Cointegration Tests ◽

The Impact ◽

The Relationship ◽

Level Analysis

Abstract There is a growing literature on the relationship between income inequality and emissions. However, these studies ignore the sectoral level differences in carbon emissions. We argue that the environmental effect of inequality might vary at the sectoral level. Our main purpose is to contribute to this growing literature on the inequality-emissions nexus by considering sectoral-level differences. For that purpose, we focus on five different sectors: power industry, buildings, transport, other industrial combustion, and other sectors. To specify our model, we augment the environmental Kuznets curve framework with income inequality by controlling the effect of globalization and urbanization. Our country sample consists of 28 OECD economies for the period between 1990 and 2018. Methodologically, we apply the second-generation panel unit root, cointegration tests, and estimators, which produce robust results against the cross-sectional dependence. Our findings reveal that not only income but also income inequality is a crucial factor in explaining changes in sectoral emissions. While rising income inequality increases carbon emissions from the power and building sectors, this finding turns out to be negative for the transport, other industrial combustion, and other sectors. Our results suggest that policies aimed at reducing carbon emissions should be designed at the sectoral level.

WARMING AND INCOME GROWTH IN THE UNITED STATES: A HETEROGENEOUS, COMMON FACTOR DYNAMIC PANEL ANALYSIS

Climate Change Economics ◽

10.1142/s2010007818500124 ◽

2018 ◽

Vol 09 (04) ◽

pp. 1850012

Author(s):

BRANTLEY LIDDLE

Keyword(s):

Common Factor ◽

The United States ◽

Cross Sectional ◽

Temperature Changes ◽

Panel Methods ◽

Long Run ◽

Negative Effect ◽

Short Run ◽

Cooling Degree Days ◽

This paper analyzes whether temperature changes influence economic growth in the contiguous 48 US states by employing panel methods that address both heterogeneity and cross-sectional dependence. Ultimately, it is determined that the negative effect of warming (initially proxied by cooling degree days) is restricted to agriculture GDP. But when weathers’ impact was measured by average summer temperature, the negative effect — still mostly restricted to agriculture GDP — was substantially and significantly larger (a finding similar to previous work) and geographically uniform. Yet, the model’s dynamics suggested that the magnitude of the short-run impact was larger (in absolute terms) than the long-run impact.

Causality between Output and Income Inequality across U.S. States: Evidence from a Heterogeneous Mixed Panel Approach

Journal of Income Distribution ◽

10.25071/1874-6322.40331 ◽

2020 ◽

pp. 20

Author(s):

Stephen M Miller

Keyword(s):

Panel Data ◽

Income Inequality ◽

Causal Relationship ◽

Gini Coefficient ◽

Personal Income ◽

Mean Deviation ◽

Cross Sectional ◽

Inequality Measures ◽

Atkinson Index ◽

In this paper, we investigate the causal relationship between output, proxied by personal income, and income inequality in a panel data of 48 states from 1929 to 2012. We employ the causality methodology proposed by Emirmahmutoglu and Kose (2011), as it incorporates possible slope heterogeneity and cross-sectional dependence in a multivariate panel. Evidence of bi-directional causal relationship exists for several inequality measures -- the Atkinson Index, Gini Coefficient, the Relative Mean Deviation, Theil’s entropy Index and Top 10% -- but no evidence of the causal relationship for the Top 1 % measure. Also, this paper finds state-specific causal relationships between personal income and inequality.

Financial Development and Economic Growth: Evidence from the Eurozone

International Journal of Accounting and Finance Studies ◽

10.22158/ijafs.v4n1p7 ◽

2021 ◽

Vol 4 (1) ◽

pp. p7

Author(s):

Pavlos Stamatiou ◽

Maria Papadopoulou

Keyword(s):

Economic Growth ◽

Financial Development ◽

Trade Openness ◽

Panel Analysis ◽

Cross Sectional ◽

Analysis Techniques ◽

Long Run ◽

Using Data ◽

The Relationship

The aim of this paper is to investigate the relationship between financial development and economic growth, within a panel framework that also accounts for trade openness, for the case of Eurozone using data covering the period 1990-2018. We explore this relationship using panel analysis techniques, robust to cross sectional dependence, in order to investigate the presence of causality between the variables. The cointegration results suggested that there is one cointegrated vector between the functions of economic growth, financial development and trade openness. In addition, the causality results of the study revealed, both in the short and long-run, that there is a unidirectional causal relationship between financial development and economic growth with direction from economic growth to financial development, as well as a unidirectional causality running from trade openness to financial development.

The Long Run Evolution of Absolute Intergenerational Mobility

10.31235/osf.io/rd7xf ◽

2020 ◽

Author(s):

Yonatan Berman

Keyword(s):

Panel Data ◽

Income Inequality ◽

20Th Century ◽

Growth Rates ◽

Cross Sectional ◽

Developed Economies ◽

Working Paper ◽

Long Run ◽

Intergenerational Income Mobility ◽

Income Data

This paper combines cross-sectional and longitudinal income data to present the evolution of absolute intergenerational income mobility in ten developed economies in the 20th century. Absolute mobility decreased during the second half of the 20th century in all these countries. Increasing income inequality and decreasing growth rates have contributed to the decrease. Yet, growth is the dominant contributor in most countries. We show that detailed panel data are unnecessary for estimating absolute mobility over the long run. (Stone Center on Socio-Economic Inequality Working Paper)

Revisiting Energy Consumption-economic Growth Hypothesis: Do Slope Heterogeneity and Cross-sectional Dependence Matter?

Advanced Journal of Social Science ◽

10.21467/ajss.8.1.10-24 ◽

2021 ◽

Vol 8 (1) ◽

pp. 10-24

Author(s):

Miriam Kamah ◽

Joshua Sunday Riti

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Panel Data ◽

Developed Countries ◽

Cross Sectional ◽

Distributed Lag ◽

Long Run ◽

Advanced Economies ◽

In this paper, the long-term nexus between energy consumption and economic growth is investigated using a panel data of 80 countries from World Bank data base for the period 1970 to 2017. In order to check for the issues of endogeneity, slope heterogeneity, and cross-sectional dependence present in errors of panel data, the study applied cross-sectional augmented autoregressive distributed lag (CS-ARDL) and cross-sectional augmented distributed lag (CS-DL) models to examine the long-term impact of energy consumption on economic growth. The empirical results revealed that energy consumption has a positive and significant long-run effect on economic growth and that cross-sectional dependence, slope endogeneity and heterogeneity are issues that should be on the watch when dealing with panel data of developing and developed countries’ analysis. Furthermore, the outcomes indicated that the impact of energy consumption on economic growth is stronger in less developed countries than in advanced economies. Technological progressions that give rise to the advancement of clean and efficient energy and substitution of low-quality fuels with high quality fuels are some of the possible channels that weaken the link between energy consumption and economic growth in advanced economies. Importantly, from a policy perspective, based on the study findings, energy conservation policies aimed at promoting environmental quality may worsen economic growth in developing countries, thereby adversely affecting their long-run economic growths.

Hours of Paid Work and Volunteering: Evidence From Danish Panel Data

Nonprofit and Voluntary Sector Quarterly ◽

10.1177/0899764021991668 ◽

2021 ◽

pp. 089976402199166

Author(s):

Hans-Peter Y. Qvist

Keyword(s):

Panel Data ◽

Social Integration ◽

Negative Relationship ◽

Time Constraint ◽

Integration Theory ◽

Paid Work ◽

Constraint Theory ◽

The Social ◽

Negative Effect ◽

The Relationship

The nature of the relationship between the time people spend on paid work and volunteering remains debated in the social sciences. Time constraint theory suggests a negative relationship because people can allocate only as much time to volunteering as their work responsibilities permit. However, social integration theory suggests a more complex inverse U-shaped relationship because paid work not only limits people’s free time but also plays a key role in their social integration. Departing from these competing theories, this study uses two-wave panel data from Denmark to examine the relationship between hours of paid work and volunteering. In support of time constraint theory, the results suggest that hours of paid work have a significant negative effect on the total number of hours that people spend volunteering, not mainly because paid work hours affect people’s propensity to volunteer but because they affect the number of hours that volunteers contribute.

A NOTE ON INFLATION, ECONOMIC GROWTH, AND INCOME INEQUALITY

Macroeconomic Dynamics ◽

10.1017/s1365100508070491 ◽

2009 ◽

Vol 13 (1) ◽

pp. 138-147 ◽

Cited By ~ 9

Author(s):

Yi Jin

Keyword(s):

Economic Growth ◽

Growth Rate ◽

Income Inequality ◽

Endogenous Growth ◽

Money Growth ◽

Relative Importance ◽

Long Run ◽

Endogenous Growth Model ◽

The Relationship ◽

Negative Growth

This paper develops a monetary endogenous growth model with capital and skill heterogeneity to analyze the relationship among inflation, growth, and income inequality. In the model inflation, growth, and inequality are jointly determined. We show that an increase in the long-run money growth rate raises inflation and reduces growth, but its effect on income inequality depends on the relative importance of the two types of heterogeneity. Inequality shrinks with the rise of inflation when capital heterogeneity dominates and enlarges when skill heterogeneity dominates. Therefore, our model supports a negative (positive) inflation–inequality relationship and a positive (negative) growth–inequality relationship when capital (skill) heterogeneity dominates. In any event, inflation and growth are negatively related.

Nonparametric panel data regression with parametric cross-sectional dependence

Econometrics Journal ◽

10.1093/ectj/utab016 ◽

2021 ◽

Author(s):

Alexandra Soberon ◽

Juan M Rodriguez-Poo ◽

Peter M Robinson

Keyword(s):

Panel Data ◽

Monte Carlo Study ◽

Generalized Least Squares ◽

Linear Estimator ◽

Dependence Structure ◽

Finite Sample ◽

Cross Sectional ◽

Panel Data Regression ◽

Local Linear Estimator ◽

Abstract In this paper, we consider efficiency improvement in a nonparametric panel data model with cross-sectional dependence. A Generalized Least Squares (GLS)-type estimator is proposed by taking into account this dependence structure. Parameterizing the cross-sectional dependence, a local linear estimator is shown to be dominated by this type of GLS estimator. Also, possible gains in terms of rate of convergence are studied. Asymptotically optimal bandwidth choice is justified. To assess the finite sample performance of the proposed estimators, a Monte Carlo study is carried out. Further, some empirical applications are conducted with the aim of analyzing the implications of the European Monetary Union for its member countries.