Partisan Conflict and Income Distribution in the United States: A Nonparametric Causality-in-Quantiles Approach

Social Indicators Research, Forthcoming

25 Pages Posted: 19 Jun 2017 Last revised: 26 May 2018

See all articles by Mehmet Balcilar

Mehmet Balcilar

Eastern Mediterranean University

Seyi Akadiri

Eastern Mediterranean University

Rangan Gupta

University of Pretoria - Department of Economics

Stephen M. Miller

University of Nevada, Las Vegas - Department of Economics; University of Connecticut - Department of Economics

Date Written: June 17, 2017

Abstract

This study examines the predictive power of a partisan conflict index on income inequality. Our study adds to the existing literature by using the newly introduced nonparametric causality-in-quantile testing approach to examine how political polarization in the Unites States affects several measures of income inequality and distribution overtime. The study uses annual time-series data from 1917-2013. We find evidence of a causal relationship running from partisan conflict to income inequality, except at the upper end of the quantiles. The study suggests that a reduction in partisan conflict will lead to a more equal income distribution.

Keywords: Partisan Conflict; Income Distribution; Quantile Causality

JEL Classification: C22, O15

Suggested Citation

Balcilar, Mehmet and Akadiri, Seyi and Gupta, Rangan and Miller, Stephen M., Partisan Conflict and Income Distribution in the United States: A Nonparametric Causality-in-Quantiles Approach (June 17, 2017). Social Indicators Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2988377 or http://dx.doi.org/10.2139/ssrn.2988377

Mehmet Balcilar

Eastern Mediterranean University ( email )

Gazimagusa
Turkey

HOME PAGE: http://www.mbalcilar.net

Seyi Akadiri

Eastern Mediterranean University ( email )

Gazimagusa, Via Mersin-10
Turkey

Rangan Gupta

University of Pretoria - Department of Economics ( email )

Lynnwood Road
Hillcrest
Pretoria, 0002
South Africa

Stephen M. Miller (Contact Author)

University of Nevada, Las Vegas - Department of Economics ( email )

4505 S. Maryland Parkway
Box 456005
Las Vegas, NV 89154
United States
702-895-3776 (Phone)
702-895-1354 (Fax)

HOME PAGE: http://faculty.unlv.edu/smiller/

University of Connecticut - Department of Economics

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

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