Income distribution and the economy: Evidence from the vector autoregression model
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Using the vector autoregression model, this research explores the impact of income concentration on GDP. The estimated results of the model and its impulse response confirm earlier studies which used different methodology or different data sets indicating that a higher concentration of income adversely affect GDP in the short run, although the effect turns positive in the long run.
KeywordsEconomic Growth Impulse Response International Economic Income Distribution Income Concentration
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