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Exploring the link between household debt and income inequality: an asymmetric approach
Date
2017
Abstract
We investigate the relationship between household debt and income inequality in the USA, allowing for asymmetry, using data over the period 1913-2008. We find evidence of an asymmetric cointegration between household debt and inequality for different regimes. Our results indicate household debt only responds to positive changes in income inequality, while there is no evidence of falling inequality significantly affecting household debt. The presence of this asymmetry provides further empirical insights into the emerging literature on household debt and inequality.
Supervisor
Description
peer-reviewed
The full text of this article will not be available on ULIR until the embargo expires on the 4/1/2018
Publisher
Taylor & Francis - Routledge
Citation
Applied Economics Letters;24 (6), pp. 404-409