Abstract
This article employs the Johansen and Engle–Granger methodology to determine if there is a cointegrating relationship between household debt and income inequality as measured by Atkinson, Piketty and Saez (2011). The results suggest a cointegrating relationship between the two series. A vector error correction model is estimated showing that a shock to household debt has statistically significant effects on income inequality in the United States over the time period 1919–2009.
Original language | English |
---|---|
Pages (from-to) | 1469-1473 |
Number of pages | 5 |
Journal | Applied Economics Letters |
Volume | 22 |
Issue number | 18 |
DOIs | |
State | Published - 12 Dec 2015 |
Keywords
- cointegration
- household debt
- income inequality