Exploring the link between household debt and income inequality: an asymmetric approach

Apostolos Fasianos, Hamid Raza, Stephen Kinsella

Research output: Contribution to journalJournal articleResearchpeer-review

4 Citations (Scopus)

Abstract

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.
Original languageEnglish
JournalApplied Economics Letters
Volume24
Issue number6
Pages (from-to)404-409
ISSN1350-4851
DOIs
Publication statusPublished - 2017

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