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Income Inequality, Economic Freedom, and Economic Growth in Greece: A Multivariate Analysis

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Advances in Empirical Economic Research (ICOAE 2022)

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Abstract

This empirical research applies the autoregressive distributed lag (ARDL) econometric technique to investigate the long- and short-run effects of economic growth and economic freedom on income inequality in Greece between 1980 and 2019. This study advances previous empirical studies by incorporating two auxiliary variables into the aforementioned nexus: population growth and tertiary educational attainment. Considering our findings, it is envisaged that Greek policymakers should consider economic freedom as an important long-term goal when contemplating policies aimed at reducing income inequality. In the short term, however, economic growth appears more effective than economic freedom in promoting income equality. Finally, the two demographic variables, population and educational attainment, emerged as critical determinants in promoting income equality.

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Author information

Authors and Affiliations

  1. Laboratory of Applied Economics, Department of Economics, University of Western Macedonia, Kastoria, Greece

    Antonis Tsitouras

  2. Department of Balkan, Slavic & Oriental Studies, University of Macedonia, Thessaloniki, Greece

    Harry Papapanagos

Authors
  1. Antonis Tsitouras
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  2. Harry Papapanagos
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Correspondence to Antonis Tsitouras .

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Editors and Affiliations

  1. Department of Economics, University of Western Macedonia, Kastoria, Greece

    Nicholas Tsounis

  2. Department of Economics, University of Western Macedonia, Kastoria, Greece

    Aspasia Vlachvei

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Tsitouras, A., Papapanagos, H. (2023). Income Inequality, Economic Freedom, and Economic Growth in Greece: A Multivariate Analysis. In: Tsounis, N., Vlachvei, A. (eds) Advances in Empirical Economic Research. ICOAE 2022. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-22749-3_30

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