scholarly journals The Long Run Evolution of Absolute Intergenerational Mobility

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)

Does Clientelism Affect Income Inequality? Evidence from Panel Data

2018 ◽  
pp. 1-24
Author(s):  
Ebney Ayaj Rana ◽  
Mustafa Kamal
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Management Strategies ◽  
Political Regime ◽  
Cross Sectional ◽  
Fiscal Management ◽  
Long Run ◽  
Negative Effect ◽  
Cross Sectional Dependence ◽  
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.

scholarly journals Growth Impacts of Income Inequality: Empirical Evidence From Nigeria

2019 ◽  
Vol 10 (3) ◽  
pp. 226
Author(s):  
Ademola Obafemi Young
Keyword(s):  
Income Inequality ◽  
Empirical Studies ◽  
Growth Time ◽  
African Countries ◽  
Developed Economies ◽  
Rights Protection ◽  
Property Rights Protection ◽  
Long Run ◽  
Theoretical Predictions ◽  
The Impact

The debate on whether income inequality promotes, restricts, or is independent of economic growth has been widely studied and discussed in development economics discourse. However, a careful reading of this extensive extant and burgeoning literature suggests that, other than the ambivalent nature and the fact that the bulk of these studies relied heavily on cross-section/-country/panel econometric analysis, empirical studies examining the nexus in the context of less developed economies, particularly, African countries, has received less attention, as most of the extant studies predominantly focused on developed economies. This current study, thus, attempts to examine the impact of inequality on growth in Nigeria spanning between the period 1970 and 2018. It also examined the theoretical predictions of some of the distinct transmission channels through which inequality impacts growth. Time series econometrics were applied. The results obtained consistently revealed that inequality hurts long-run growth in Nigeria. Also, the results obtained revealed that inequality in income increases relative redistribution and fertility, but lessens investment, gross enrollment ratio, and property rights protection in Nigeria, which may in turn impede growth.

scholarly journals ASYMPTOTICALLY UNBIASED ESTIMATION OF AUTOCOVARIANCES AND AUTOCORRELATIONS WITH LONG PANEL DATA

2010 ◽  
Vol 26 (5) ◽  
pp. 1263-1304 ◽  
Author(s):  
Ryo Okui
Keyword(s):  
Time Series ◽  
Panel Data ◽  
Unobserved Heterogeneity ◽  
Small Samples ◽  
Unbiased Estimation ◽  
Series Length ◽  
Cross Sectional ◽  
Long Run ◽  
The Individual ◽  
Time Invariant

An important reason for analyzing panel data is to observe the dynamic nature of an economic variable separately from its time-invariant unobserved heterogeneity. This paper examines how to estimate the autocovariances of a variable separately from its time-invariant unobserved heterogeneity. When both cross-sectional and time series sample sizes tend to infinity, we show that the within-group autocovariances are consistent, although they are severely biased when the time series length is short. The biases have the leading term that converges to the long-run variance of the individual dynamics. This paper develops methods to estimate the long-run variance in panel data settings and to alleviate the biases of the within-group autocovariances based on the proposed long-run variance estimators. Monte Carlo simulations reveal that the procedures developed in this paper effectively reduce the biases of the estimators for small samples.

scholarly journals The trade-off between GDP and CO2 emissions in poor countries: A dynamic common correlated effects approach for unbalanced panel data

2021 ◽  
Author(s):  
Quoc Khanh Duong
Keyword(s):  
Climate Change ◽  
Panel Data ◽  
Co2 Emissions ◽  
Growth Models ◽  
Cross Sectional ◽  
Poor Countries ◽  
Trade Offs ◽  
Long Run ◽  
Common Correlated Effects ◽  
Unbalanced Panel Data

Abstract In recent years, the term "climate change" has been increasingly receiving a lot of attention from scholars and policy makers, adversely affecting the lives of people (mostly of the poor) around the world in the present, and threatening the environment quality in the future. With many concerns about environmental degradation, countries tend to transform economic growth models causing negative impacts on the environment, especially for those in the stage of industrialization and modernization. This study was aimed at investigating the trade-offs between economic development and climate change among poor nations – the most affected by and most likely causing to climate change. By using a dynamic common correlated effects approach for unbalanced panel data which deals with cross-sectional dependency and time-series persistence, the paper showed that GDP is strongly correlated to CO2 emissions both in the short and long run, and one of the reasons is the use of CO2-generating energy sources.JEL classification: C23, O44, Q54

scholarly journals Determinant Factors Poverty of Relativity in Banten Province: A Panel Data Analysis

2021 ◽  
Vol 4 (2) ◽  
pp. 131-141
Author(s):  
Deris Desmawan ◽  
Rizal Syaifudin ◽  
Randi Mamola Mamola ◽  
Hanifa Haya ◽  
Dwi Indriyani
Keyword(s):  
Human Capital ◽  
Panel Data ◽  
Income Inequality ◽  
Social Protection ◽  
Panel Data Analysis ◽  
Fixed Effect Model ◽  
Economic Recovery ◽  
Long Run ◽  
Effect Model ◽  
The Government

The problem of the poverty of relativity today is still a crucial topic considering the economic conditions in Indonesia are experiencing a slump due to Covid-19. The problem of poverty relativity is one of the main points that must be faced by the government in providing social protection assistance policies as a form of economic recovery during the Covid-19. The poverty of relativity in Banten Province is relatively high even though it has been ranked 10 nationally. Therefore, this study aims to analyze the relationship between unemployment, income inequality, and human capital as well as find out which level is very dominant in the long run on each of the variables that directly affect the relativity of poverty in Banten Province. This study examines how changes in economic indicators occur due to the Covid-19 pandemic in 8 Regencies/Cities of Banten Province. The analysis of this study uses panel data regression using the method Fixed Effect Model (FEM) in 8 regencies/cities in Banten Province in the data range from 2016 to 2020. The results of this study indicate that unemployment due to layoffs has a positive and significant influence on the relativity of poverty in 8 districts/cities of Banten Province. Furthermore, this study shows that income inequality has no significant and positive effect on the relativity of poverty. Meanwhile, human capital appears to be one of the dominant factors that can have a negative and significant impact on economic recovery and reduce the relative impact of poverty during the Covid-19 pandemic.

scholarly journals Testing Marx. Income Inequality, Concentration, and Socialism in Late 19th Century Germany

2021 ◽  
Author(s):  
Charlotte Bartels ◽  
Felix Kersting ◽  
Nikolaus Wolf
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
19Th Century ◽  
Trade Unions ◽  
Bargaining Power ◽  
Economic Inequality ◽  
Strongly Correlated ◽  
Late 19Th Century ◽  
Strike Activity ◽  
Working Paper

We study the dynamics of income inequality, capital concentration, and voting outcomes before 1914. Based on new panel data for Prussian counties and districts we re-evaluate the key economic debate between Marxists and their critics before 1914. We show that the increase in inequality was strongly correlated with a rising capital share, as predicted by Marxists at the time. In contrast, rising capital concentration was not associated with increasing income inequality. Relying on new sector×county data, we show that increasing strike activity worked as an offsetting factor. Similarly, the socialists did not directly benefit from rising inequality at the polls, but from the activity of trade unions. Overall, we find evidence for a rise in the bargaining power of workers, which limited the increase in inequality before 1914. (Stone Center on Socio-Economic Inequality Working Paper Series)

Intergenerational Income Mobility in a Less-Developed, High-Inequality Context: The Case of Chile

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Javier I Nunez ◽  
Leslie Miranda
Keyword(s):  
Income Inequality ◽  
Inverse Relationship ◽  
Income Elasticity ◽  
High Income ◽  
Income Mobility ◽  
Cross Sectional ◽  
International Evidence ◽  
Intergenerational Income Mobility ◽  
Income Determinants

Abstract This paper studies the magnitude of intergenerational income mobility in less developed, high inequality Chile. Following a known methodology where fathers' incomes are predicted from standard income determinants such as education and occupation, we get comparable estimates of the intergenerational income elasticity in the range of 0.57 to 0.74 and 0.63 to 0.76 for ages 25-40 and 31-40, respectively. These values place Chile at the high end of the available international evidence. Considering Chile's high income inequality, this finding supports the hypothesis proposed in the literature of an inverse relationship between cross-sectional income inequality and intergenerational income mobility.

scholarly journals National Income Inequality and Declining GDP Growth Rates Are Associated with Increases in HIV Diagnoses among People Who Inject Drugs in Europe: A Panel Data Analysis

PLoS ONE ◽  
2015 ◽  
Vol 10 (4) ◽  
pp. e0122367 ◽  
Author(s):  
Georgios K. Nikolopoulos ◽  
Anastasios Fotiou ◽  
Eleftheria Kanavou ◽  
Clive Richardson ◽  
Marios Detsis ◽  
...  
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Income Inequality ◽  
Growth Rates ◽  
People Who Inject Drugs ◽  
Panel Data Analysis ◽  
National Income ◽  
Gdp Growth

scholarly journals Robust determinants of income distribution across and within countries

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253291
Author(s):  
Liang Frank Shao
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Empirical Studies ◽  
Time Variable ◽  
Omitted Variables ◽  
Cross Sectional ◽  
Innovative Strategy ◽  
Positive Effects ◽  
Selection Operator

Multicollinearity widely exists in empirical studies, which leads to imprecise estimation and even endogeneity when omitted variables are correlated with any regressors. We apply an innovative strategy, different from the usual tools (instrumental variable, ridge regression, and least absolute shrinkage and selection operator), to estimate the robust determinants of income distribution. We transform panel data into (quasi-) cross-sectional data by removing country and time effects from the data so that all variables become zero mean and orthogonal to the country dummies and time variable, and multicollinearity becomes very low or even disappears with the quasi-cross sectional data in any specifications regardless of country dummies and time variable being included or not. Our contribution is threefold. First, we build a general method to address the multicollinearity issue in panel data, which is to isolate the common contents of correlated variables and ensures robust estimates in different specifications (dynamic or static specifications) and estimators (within- or between-effects estimators). Second, we find no evidence for the Kuznets hypothesis within and across countries; investment is economically and statistically the most robust determinant of income inequality; meanwhile, labor income share shows robustly and consistently positive effects on income inequality, which challenges the related literature. Last, simulations with our estimates show that the total marginal effects of development (regarding GDP, capital stock and investment) on income inequality are very likely to be positive within and between countries except that the impacts on middle-60% and top-quintile income shares are not so likely to increase income inequality across countries.

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