Nonlinear causal asymmetries in income inequality, corruption, and market power: evidence from OECD nations using symbolic transfer entropy

Q: What does this research mean for the field?

In OECD nations, market power causally drives corruption, which subsequently drives income inequality, with both corruption and inequality exhibiting feedback-driven persistence. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

Nadiah Ruza; FAKARUDIN KAMARUDIN; Hafezali Iqbal Hussain; M. Ishaq Bhatti

doi:10.1016/j.najef.2026.102665

May 1, 2026The North American Journal of Economics and FinanceOpen Access

Nonlinear causal asymmetries in income inequality, corruption, and market power: evidence from OECD nations using symbolic transfer entropy

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Key Points

The research aims to analyze the causal relationships between income inequality, corruption, and market power in OECD nations using symbolic transfer entropy.
Employs symbolic transfer entropy for macroeconomic causality analysis.
Utilizes quantile-based binning to manage nonnormality and structural shifts in panel data from OECD countries.
Identifies directional influence of market power on corruption, subsequently affecting income inequality.
Finds significant directional movement: market power influences corruption, which then affects income inequality.
Detects feedback-driven persistence in the dynamics of corruption and inequality, indicating interlinked effects.

Implication

Identifies directional effects between market power, corruption, and income inequality in OECD nations, suggesting persistent dynamics.

Abstract

• The paper introduces symbolic transfer entropy to macroeconomic causality analysis in OECD panel data. • The paper employs quantile-based binning to address nonnormality and structural shifts. • It identifies directional movement in market power → corruption → inequality effects. • It detects feedback-driven persistence in corruption and inequality dynamics.

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Cite This Study

Ruza et al. (2026) studied this question.

synapsesocial.com/papers/6a1d21ba02fbce9130637a33 https://doi.org/10.1016/j.najef.2026.102665

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Nonlinear causal asymmetries in income inequality, corruption, and market power: evidence from OECD nations using symbolic transfer entropy

Key Points

Implication

Abstract

Discussion

Cite This Study

Nonlinear causal asymmetries in income inequality, corruption, and market power: evidence from OECD nations using symbolic transfer entropy

Key Points

Implication

Abstract

Discussion

Cite This Study

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