Econometric Analysis of Inequality
|Author:||Bc. Pavel Munduch|
|Year:||2018 - winter|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This bachelor thesis aims to explore the contemporary issue of income inequality/equality
inEuropean context. Exploring the already existing literature and
looking at unbalanced panel data from 41 European countries and observations
from the 1992-2014 period,this works seeks for any systematic evidence
of causal determinants in regards to incresing or reducing income inequality.
Variables such economic growth, education, religion, tax, democracy or corruption
are included in the analysis. After carrying out the process of choosing
fitting model, testing for serial correlation or heteroskedasticity and applying
robust errors, the significant effects turned to be present in trade, taxes, corruption
and democracy areas. Implying that increase in trade to GDP ratio,
improvingdemocracy,fighting corruptionandincreasedtax incomes resultin
lower income inequality.