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    The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model

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    Fulltext not available
    Authors
    Apergis, Nicholas
    Dincer, O.
    Payne, J.
    Date
    2010
    Type
    Journal Article
    
    Metadata
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    Citation
    Apergis, Nicholas and Dincer, Oguzhan C. and Payne, James E. 2010. The Relationship Between Corruption and Income Inequality in U.S. states: Evidence From a Panel Cointegration and Error Correction Model. Public Choice. 145 (1-2): pp. 125-135.
    Source Title
    Public Choice
    DOI
    10.1007/s11127-009-9557-1
    ISSN
    0048-5829
    URI
    http://hdl.handle.net/20.500.11937/18639
    Collection
    • Curtin Research Publications
    Abstract

    We investigate the causality between corruption and income inequality within a multivariate framework using a panel data set of all 50 U.S. states over the period 1980 to 2004. The heterogeneous panel cointegration test by Pedroni (Oxf. Bull. Econ. Stat. 61:653–670, 1999; Econom. Theory 20:597–627, 2004) indicates that in the long run corruption and the unemployment rate have a positive and statistically significant impact on income inequality while a negative impact is found for real personal income per capita, education, and unionization rate. The Granger-causality results associated with a panel vector error correction model indicate both short-run and long-run bidirectional causality between corruption and income inequality.

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