The relationship between corruption and income inequality in U.S. states: evidence from a panel cointegration and error correction model

By N. Apergis, Oguzhan Dincer, James E. Payne. 2010

152 citations recorded by the source corpus.

We investigate the causality between corruption and income inequality within a multivariate framework using a panel data set of all 50 U.S. states over the period 1980 to 2004. The heterogeneous panel cointegration test by Pedroni (Oxf. Bull. Econ. Stat. 61:653–670, 1999; Econom. Theory 20:597–627, 2004) indicates that in the long run corruption and the unemployment rate have a positive and statistically significant impact on income inequality while a negative impact is found for real personal income per capita, education, and unionization rate. The Granger-causality results associated with a panel vector error correction model indicate both short-run and long-run bidirectional causality between corruption and income inequality.

View Paper: https://www.semanticscholar.org/paper/96764b90ceb12a7641cea93c7ff32af60edafc94

Citations in the corpus

• CAUSES AND EFFECTS OF CORRUPTION: WHAT HAS PAST DECADE'S EMPIRICAL RESEARCH TAUGHT US? A SURVEY (2018, unknown): “A later study investigating the relationship between income inequality and corruption using data from 1980 to 2004 for 50 US states found that both in the short run and in the long run, there is bidirectional causality between income inequality and corruption (Apergis et al., 2010).”