Title

Income Inequality and Household Debt: A Cointegration Test

Document Type

Article

Publication Date

12-12-2015

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.

DOI

10.1080/13504851.2015.1039698

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