Original scientific paper
https://doi.org/10.3326/fintp.39.4.1
Economic freedom and income inequality: further evidence from 58 countries in the long-run
Nicholas Apergis
; University of Piraeus, Department of Banking and Financial Management, Piraeus, Greece
Abstract
This study employs panel data for 58 countries from 1980-2010, to investigate the dynamic relationship between economic freedom and income inequality. Both linear and non-linear (Panel Smooth Threshold Regression) cointegration estimation methods are used to identify a long-run equilibrium relationship between the overall economic freedom index and its components, and income inequality. The linear long-run parameter estimates for the entire panel of countries show that the association is negative, while the non-linear long-run parameter estimates indicate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point the association is positive.
Keywords
economic freedom; Economic Freedom Index; income distribution
Hrčak ID:
149479
URI
Publication date:
14.12.2015.
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