Does Income Distribution Affect U.S. State Economic Growth?

.  Numerous models propose an income‐distribution/growth linkage, but the empirical evidence is ambiguous and depends on the regression approach. Mixed findings are not unexpected if there are differing short‐ and long‐term responses. Approaches utilizing cross‐sectional variation primarily reflect...

Full description

Saved in:
Bibliographic Details
Published in:Journal of regional science 2005-05, Vol.45 (2), p.363-394
Main Author: Partridge, Mark D.
Format: Article
Language:English
Subjects:
America
Applied economics
Bgi / Prodig
Comparative analysis
Economic growth
Economic theory
Empirical research
Equity
Human geography
Income distribution
Methodology
Regression analysis
States
Studies
Trade-off
U.S.A
United States of America
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:.  Numerous models propose an income‐distribution/growth linkage, but the empirical evidence is ambiguous and depends on the regression approach. Mixed findings are not unexpected if there are differing short‐ and long‐term responses. Approaches utilizing cross‐sectional variation primarily reflect long‐run effects, whereas those using time‐series variation primarily reveal short‐run effects. This study reconciles these issues using U.S. state data. After allowing for short‐ and long‐run responses and for separate effects between the tails and middle of the distribution, the consistent pattern is the middle‐class share and overall inequality are positively related to long‐run growth. However, the short‐run income‐distribution response is less clear.
ISSN:0022-4146
1467-9787
DOI:10.1111/j.0022-4146.2005.00375.x