Social Indicators Research
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This paper examines the predictive power of a partisan conflict on income inequality. Our study contributes to the existing literature by using the newly introduced nonparametric causality-in-quantile testing approach to examine how political polarization in the United States affects several measures of income inequality and distribution overtime. The study uses annual time-series data between the periods 1917–2013. We find evidence in support of a dynamic causal relationship between partisan conflict and income inequality, except at the upper end of the quantiles. Our empirical findings suggest that a reduction in partisan conflict will lead to a reduction in our measures of income inequality, but this requires that inequality is not exceptionally high.
Partisan conflict; Income inequality; Quantile causality
Akadiri, S. S.,
Miller, S. M.
Partisan Conflict and Income Inequality in the United States: A Nonparametric Causality-in-Quantiles Approach.
Social Indicators Research, 142(1),