Inequality Persistence of 21 OECD Countries from 1870 to 2020

Linear and Non-Linear Fractional Integration Approaches

Bibliographic Data

ID2064252
AuthorsSakiru Adebola Solarin (0000-0001-7722-1029), Carmen Lafuente (0000-0002-7625-5582, Universidad Francisco de Vitoria), Luis A Gil-Alana (0000-0002-5760-3123, Universidad Francisco de Vitoria, corresponding author), Maria Jesus Gonzalez Blanch (Universidad Francisco de Vitoria)
Year2022
Volume164
Issue2
Pages711-725
Publication date2022-11-01
Open AccessYes
TypeARTICLE
VenueSocial Indicators Research (JOURNAL)
Journal identifiersISSN: 0303-8300 • E-ISSN: 1573-0921
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11205-022-02982-x
PMID35937978
OpenAlexW4288913955
LanguageEN
Citations received1
References cited38

This paper investigates inequality persistence in a group of 21 OECD countries using linear and non-linear fractionally integrated methods. Using linear models, the results show that the series are strongly persistent which implies lack of average reversal and permanency of shocks. Mean reversion is only found in the case of Finland and partial evidence of mean reversion is detected for Belgium, Greece, Austria and the Netherlands. The results are similar using non-linear methods. Mean reversion is only found in the case of Finland, Belgium, Greece and Spain. Although, most countries show no evidence of non-linear structures except for four countries, namely, Finland, Spain, the United Kingdom and the United States. The implications of the empirical findings are reported at the end of the manuscript

Demographic economics · Econometrics · Economic geography · Economics · Human geography · Inequality · Linear model · Linear relationship · Mean reversion · Persistence (discontinuity · Public health · Quality of Life Research · Sociology · Statistics · Demography · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality · Mathematics · Medicine

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