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 language | English |
|---|---|
| Pages (from-to) | 404-409 |
| Number of pages | 6 |
| Journal | Applied Economics Letters |
| Volume | 24 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 30 Mar 2017 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- Household debt
- credit asymmetry
- income inequality
- nonlinear ARDL
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