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The Granger-causality between income and educational inequality: a spatial cross-regressive VAR framework

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  • Vassilis Tselios

Abstract

This paper tests the causal processes between income and educational inequality within regions of the European Union, using a spatial cross-regressive VAR framework. The results show that there is a heterogeneous causality from income inequality to educational inequality and vice versa, and interregional income and educational externalities are relevant to this causality. This finding raises potentially interesting economic policy implications. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Vassilis Tselios, 2014. "The Granger-causality between income and educational inequality: a spatial cross-regressive VAR framework," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 221-243, August.
    • Handle: RePEc:spr:anresc:v:53:y:2014:i:1:p:221-243
    DOI: 10.1007/s00168-014-0626-0
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    More about this item

    Keywords

    D31; D62; I24; R12;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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