Nonlinearity and cross-country dependence of income inequality
Leena Kalliovirta; Tuomas Malinen;
Subject: top 1% income share, GMAR, multiple equilibria, developed economies.
jel: jel:C33 | jel:C32 | jel:D30
We use top income data and the newly developed regime switching Gaussian mixture vector autoregressive model to explain the dynamics of income inequality in developed economies within the last 100 years. Our results indicate that the process of income inequality consist... View more