TY - JOUR
T1 - Exploring the link between household debt and income inequality
T2 - an asymmetric approach
AU - Fasianos, Apostolos
AU - Raza, Hamid
AU - Kinsella, Stephen
PY - 2017
Y1 - 2017
N2 - We investigate the relationship between household debt and income inequality in the USA, allowing for asymmetry, using data over the period 1913–2008. We find evidence of an asymmetric cointegration between household debt and inequality for different regimes. Our results indicate household debt only responds to positive changes in income inequality, while there is no evidence of falling inequality significantly affecting household debt. The presence of this asymmetry provides further empirical insights into the emerging literature on household debt and inequality.
AB - We investigate the relationship between household debt and income inequality in the USA, allowing for asymmetry, using data over the period 1913–2008. We find evidence of an asymmetric cointegration between household debt and inequality for different regimes. Our results indicate household debt only responds to positive changes in income inequality, while there is no evidence of falling inequality significantly affecting household debt. The presence of this asymmetry provides further empirical insights into the emerging literature on household debt and inequality.
U2 - 10.1080/13504851.2016.1197360
DO - 10.1080/13504851.2016.1197360
M3 - Journal article
SN - 1350-4851
VL - 24
SP - 404
EP - 409
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 6
ER -