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Occupy This: The Effect of Income Inequality on GDP Per Capita Growth Using Panel Data in the United States from 1963 to 2009Lee, Dylan B. 01 January 2012 (has links)
Income inequality and its relationship to long-term GDP per capita growth has been researched for decades since the development of the Kuznet’s Curve. Theoretical and empirical research has shown mixed results including positive, negative, non-existent, or statistically insignificant relationships. Empirical research on income inequality and economic growth in the United States has also shown mixed results. In addition to using existing data, this paper uses originally-constructed Gini Coefficients from 2005 to 2009. A statistically significant negative correlation between income inequality, and both short-term growth and long-term growth is found in the analysis of this data. Finally, this paper attempts to justify a causal relationship between income inequality and long-term growth.
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