The transitional economies of Eastern Europe (EE) and the former Soviet Union (FSU) experienced a dramatic increase in income inequality in the 1990s. In this paper I investigate the causes of unprecedented changes in income distribution using a unique panel of inequality estimates for 24...

There is a growing literature studying the effects of economic freedom and democracy on income inequality; nevertheless, the inequality-effects of both factors are apparently studied separately. This paper revisits the income inequality-economic freedom nexus and uncovers the role of political...

Exploiting the variations in household income and consumption structure, this paper corrects the measurement errors of consumption expenditure reported by households in different income classes. By using the Urban Household Survey (UHS) data, empirical results demonstrate that consumption...

In this paper we analyze theoretically and empirically the impact of an increase in income inequality on the current account balance. We develop a model with consumption externalities and heterogeneous agents which explains how an increase in income inequality can affect negatively or positively...

This paper investigates the relationship between competition law and income inequality using ‎panel data techniques for a large sample of countries over the period 1960–2010. Applying ‎our analysis to a World sample and OECD countries, we find consistent evidence of a ‎negative, and in...

This paper provides a further empirical evaluation of the Neoclassical theory of distribution as opposed to Marx-biased technical change (MBTC) by applying the theoretical and empirical framework developed by Foley and Michl (1999), Michl (1999, 2009) and Basu (2010) to a panel of countries....

This paper examines the role of financial development on U.S. state-level income inequality in the 50 states from 1976 to 2011, using fixed-effect estimation. We find robust results whereby financial development linearly increases income inequality for the 50 states. When we divide 50 states...

Relying on data for a panel of 90 advanced and emerging economies spanning the 1970-2015 period and System-GMM dynamic panel estimation, we extend the standard ‘Kuznets-curve' empirical framework to investigate how globalisation, financial sector development and technology influence changes in...

Thomas Piketty's Capital in the Twenty-First Century puts forth a logically consistent explanation for changes in income and wealth inequality patterns. However, while rich in data, the book provides no formal empirical testing for its theoretical causal chain. In this paper, I build a set of...

In this article, we link the realized accuracy of predictive panels to changes in distributions that occur between the training (in-sample) phase and the testing (out-of-sample) phase. We obtain polynomial upper bounds for the loss of accuracy between training and testing. We model covariate...