TY - JOUR
T1 - Household debt, economic conditions, and income inequality
T2 - A state level analysis
AU - Berisha, Edmond
AU - Meszaros, John
N1 - Publisher Copyright:
© 2016 Western Social Science Association
PY - 2017/3/1
Y1 - 2017/3/1
N2 - This paper uses OLS regressions to understand the relationship between household debt, income inequality, and economic growth in the United States. For robustness we use two different measures of income inequality. The results show that, for the period 2003–2012, there is statistical evidence that increases in household debt are associated with lower levels of economic growth and higher rates of unemployment. In addition, we uncover evidence that high growth rates in household debt are associated with negative growth in income inequality, likely because debt caused economic growth to slow, diminishing the returns of top earners.
AB - This paper uses OLS regressions to understand the relationship between household debt, income inequality, and economic growth in the United States. For robustness we use two different measures of income inequality. The results show that, for the period 2003–2012, there is statistical evidence that increases in household debt are associated with lower levels of economic growth and higher rates of unemployment. In addition, we uncover evidence that high growth rates in household debt are associated with negative growth in income inequality, likely because debt caused economic growth to slow, diminishing the returns of top earners.
KW - Economic growth
KW - Household debt
KW - Income inequality
UR - http://www.scopus.com/inward/record.url?scp=85007583956&partnerID=8YFLogxK
U2 - 10.1016/j.soscij.2016.11.002
DO - 10.1016/j.soscij.2016.11.002
M3 - Article
AN - SCOPUS:85007583956
SN - 0362-3319
VL - 54
SP - 93
EP - 101
JO - Social Science Journal
JF - Social Science Journal
IS - 1
ER -
