The Relationship between the Inflation Rate and Inequality Across U.S. States : A Semiparametric Approach

This paper uses a cross-state panel for the United States over the 1976 to 2007 period to assess the relationship between income inequality and the inflation rate. Employing a semiparametric instrument variable (IV) estimator, we find that the relationship depends on the level of the inflation rate. A positive relationship occurs only if the states exceed a threshold level of inflation rate. Below this value, inflation rate lowers income inequality. The results suggest that a nonlinear relationship exists between income inequality and the inflation rate

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Year of publication:	2020
Authors:	Balcilar, Mehmet
Other Persons:	Chang, Shinhye (contributor) ; Gupta, Rangan (contributor) ; Miller, Stephen M. (contributor)
Publisher:	[2020]: [S.l.] : SSRN
Subject:	USA \| United States \| Inflation \| Nichtparametrisches Verfahren \| Nonparametric statistics \| Einkommensverteilung \| Income distribution \| Inflationsrate \| Inflation rate \| Teilstaat \| State of a federation

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