The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model

We investigate the causality between corruption and income inequality within a multivariate framework using a panel data set of all 50 U.S. states over the period 1980 to 2004. The heterogeneous panel cointegration test by Pedroni (Oxf. Bull. Econ. Stat. 61:653–670, 1999; Econom. Theory 20:597–627,...

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Main Authors: Apergis, Nicholas, Dincer, O., Payne, J.
Format: Journal Article
Published: Springer New York LLC 2010
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/18639
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author Apergis, Nicholas
Dincer, O.
Payne, J.
author_facet Apergis, Nicholas
Dincer, O.
Payne, J.
author_sort Apergis, Nicholas
building Curtin Institutional Repository
collection Online Access
description We investigate the causality between corruption and income inequality within a multivariate framework using a panel data set of all 50 U.S. states over the period 1980 to 2004. The heterogeneous panel cointegration test by Pedroni (Oxf. Bull. Econ. Stat. 61:653–670, 1999; Econom. Theory 20:597–627, 2004) indicates that in the long run corruption and the unemployment rate have a positive and statistically significant impact on income inequality while a negative impact is found for real personal income per capita, education, and unionization rate. The Granger-causality results associated with a panel vector error correction model indicate both short-run and long-run bidirectional causality between corruption and income inequality.
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publishDate 2010
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spelling curtin-20.500.11937-186392017-09-13T13:45:16Z The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model Apergis, Nicholas Dincer, O. Payne, J. Panel unit root and cointegration tests Income inequality Granger-causality Corruption We investigate the causality between corruption and income inequality within a multivariate framework using a panel data set of all 50 U.S. states over the period 1980 to 2004. The heterogeneous panel cointegration test by Pedroni (Oxf. Bull. Econ. Stat. 61:653–670, 1999; Econom. Theory 20:597–627, 2004) indicates that in the long run corruption and the unemployment rate have a positive and statistically significant impact on income inequality while a negative impact is found for real personal income per capita, education, and unionization rate. The Granger-causality results associated with a panel vector error correction model indicate both short-run and long-run bidirectional causality between corruption and income inequality. 2010 Journal Article http://hdl.handle.net/20.500.11937/18639 10.1007/s11127-009-9557-1 Springer New York LLC restricted
spellingShingle Panel unit root and cointegration tests
Income inequality
Granger-causality
Corruption
Apergis, Nicholas
Dincer, O.
Payne, J.
The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title_full The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title_fullStr The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title_full_unstemmed The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title_short The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model
title_sort relationship between corruption and income inequality in u.s. states: evidence from a panel cointegration and error correction model
topic Panel unit root and cointegration tests
Income inequality
Granger-causality
Corruption
url http://hdl.handle.net/20.500.11937/18639