Tuomas, Malinen (2011): Inequality and savings: a reassesment of the relationship in cointegrated panels.

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Abstract
The effect of income inequality on savings and consumption has remained an open empirical issue despite several decades of research. Results obtained in this study indicate that income inequality and private consumption are both I(1) nonstationary variables that are cointegrated, and inequality has had a negative effect on private consumption in CentralEuropean and Nordic countries. Results for AngloSaxon countries are inconclusive. These findings suggest that previous empirical research may have produced biased results on the effect of inequality on savings by assuming that inequality would be a stationary variable.
Item Type:  MPRA Paper 

Original Title:  Inequality and savings: a reassesment of the relationship in cointegrated panels 
Language:  English 
Keywords:  Panel cointegration, top 1% income share, private consumption, gross savings 
Subjects:  C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C23  Models with Panel Data; Longitudinal Data; Spatial Time Series C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C22  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models E  Macroeconomics and Monetary Economics > E2  Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E21  Consumption; Saving; Wealth 
Item ID:  33350 
Depositing User:  Tuomas Malinen 
Date Deposited:  13. Sep 2011 12:56 
Last Modified:  11. Feb 2013 16:39 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/33350 