2017

Growth, Inequality and Economic Freedom: Evidence from the U.S. States

Reprint No. 2017:27

Author(s): Christian BjørnskovYear: 2017 Title: Contemporary Economic Policy Volume (No.): 35 (3) Pages: 518–531
Online article (restrictions may apply)


This article returns to the discussion of how income inequality affects economic growth. The main argument of the article is that economic freedom is likely to mediate the association between inequality and growth. In a panel of 300 observations from six 5-year periods across the 50 U.S. states, I employ five different measures of inequality. The results show that across measures, the growth effects of inequality turn more positive with more economic freedom. The moderating effects are mainly driven by measures of public sector consumption.


Reference:
Bjørnskov, Christian (2017), "Growth, Inequality and Economic Freedom: Evidence from the U.S. States". Contemporary Economic Policy 35(3), 518–531.

Christian Bjørnskov

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