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

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.