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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Interdisciplinary European Studies

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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