Title
Dynamic Impact of Aging on Income Inequality in the U.S. with Vector Autoregressive Model
Proposal Focus
Research
Presentation Type
Poster
Abstract
Income inequality has been showing a steady increase for past decades and will be worsened in the future (Piketty, 2014). One of the most important factors to explain the worsening income inequality can be aging. Previous studies on aging focus on its impact on traditional issues such as health, retirement, and economic growth. This study finds the direct relationship between aging and income inequality using the vector autoregressive (VAR) model (Blanchard and Quah, 1989). The VAR model is useful to analyze the long-run response of aging on income inequality. The empirical results will verify the negative impact of aging on income inequality in the U.S. The governmental efforts to reduce the negative impact of aging on health care and pensions could delay the worsening income inequality.
Keywords
Aging, Income inequality, Vector autoregression
Location
Wyndsor II
Start Date
4-4-2020 10:15 AM
End Date
4-4-2020 11:15 AM
Dynamic Impact of Aging on Income Inequality in the U.S. with Vector Autoregressive Model
Wyndsor II
Income inequality has been showing a steady increase for past decades and will be worsened in the future (Piketty, 2014). One of the most important factors to explain the worsening income inequality can be aging. Previous studies on aging focus on its impact on traditional issues such as health, retirement, and economic growth. This study finds the direct relationship between aging and income inequality using the vector autoregressive (VAR) model (Blanchard and Quah, 1989). The VAR model is useful to analyze the long-run response of aging on income inequality. The empirical results will verify the negative impact of aging on income inequality in the U.S. The governmental efforts to reduce the negative impact of aging on health care and pensions could delay the worsening income inequality.