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Yuexing Lan and Charles Hegji
''A new look at the trickle-down effect in the united states economy''
( 2009, Vol. 29 No.3 )
This paper is a further investigation of the trickle-down theory. In addition to using more recent data, we use a methodology that examines some questions not previously addressed in the literature. The results suggest that an increase in wage leads to a more equal income distribution. The findings also indicate that there is no ¡°trickle-down¡± from proprietors¡¯ income and corporate profits to lower income group.
JEL: I3 - Welfare and Poverty: General
Manuscript Received : Nov 10 2008 Manuscript Accepted : Jul 23 2009

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