Economic freedom and income inequality: further evidence from 58 countries in the long-run
This study employs panel data for 58 countries from 1980-2010, to investigate the dynamic relationship between economic freedom and income inequality. Both linear and non-linear (Panel Smooth Threshold Regression) cointegration estimation methods are used to identify a long-run equilibrium relations...
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| Format: | Article |
| Language: | English |
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Institute of Public Finance
2015-12-01
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| Series: | Financial Theory and Practice |
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| Online Access: |
http://fintp.ijf.hr/upload/files/ftp/2015/4/apergis.pdf
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| _version_ | 1818554318983266304 |
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| author | Nicholas Apergis |
| author_facet | Nicholas Apergis |
| author_sort | Nicholas Apergis |
| collection | DOAJ |
| description | This study employs panel data for 58 countries from 1980-2010, to investigate the dynamic relationship between economic freedom and income inequality. Both linear and non-linear (Panel Smooth Threshold Regression) cointegration estimation methods are used to identify a long-run equilibrium relationship between the overall economic freedom index and its components, and income inequality. The linear long-run parameter estimates for the entire panel of countries show that the association is negative, while the non-linear long-run parameter estimates indicate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point the association is positive. |
| first_indexed | 2024-12-12T09:37:47Z |
| format | Article |
| id | doaj.art-527d58493c11431aa8847f4e1c30a660 |
| institution | Directory Open Access Journal |
| issn | 1845-9757 |
| language | English |
| last_indexed | 2024-12-12T09:37:47Z |
| publishDate | 2015-12-01 |
| publisher | Institute of Public Finance |
| record_format | Article |
| series | Financial Theory and Practice |
| spelling | doaj.art-527d58493c11431aa8847f4e1c30a6602022-12-22T00:28:40ZengInstitute of Public FinanceFinancial Theory and Practice1845-97572015-12-0139434937010.3326/fintp.39.4.1824Economic freedom and income inequality: further evidence from 58 countries in the long-runNicholas Apergis0 University of Piraeus, Department of Banking and Financial Management, Piraeus, Greece This study employs panel data for 58 countries from 1980-2010, to investigate the dynamic relationship between economic freedom and income inequality. Both linear and non-linear (Panel Smooth Threshold Regression) cointegration estimation methods are used to identify a long-run equilibrium relationship between the overall economic freedom index and its components, and income inequality. The linear long-run parameter estimates for the entire panel of countries show that the association is negative, while the non-linear long-run parameter estimates indicate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point the association is positive. http://fintp.ijf.hr/upload/files/ftp/2015/4/apergis.pdf economic freedom; Economic Freedom Index; income distribution |
| spellingShingle | Nicholas Apergis Economic freedom and income inequality: further evidence from 58 countries in the long-run Financial Theory and Practice economic freedom; Economic Freedom Index; income distribution |
| title | Economic freedom and income inequality: further evidence from 58 countries in the long-run |
| title_full | Economic freedom and income inequality: further evidence from 58 countries in the long-run |
| title_fullStr | Economic freedom and income inequality: further evidence from 58 countries in the long-run |
| title_full_unstemmed | Economic freedom and income inequality: further evidence from 58 countries in the long-run |
| title_short | Economic freedom and income inequality: further evidence from 58 countries in the long-run |
| title_sort | economic freedom and income inequality further evidence from 58 countries in the long run |
| topic | economic freedom; Economic Freedom Index; income distribution |
| url |
http://fintp.ijf.hr/upload/files/ftp/2015/4/apergis.pdf
|
| work_keys_str_mv | AT nicholasapergis economicfreedomandincomeinequalityfurtherevidencefrom58countriesinthelongrun |