Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: The transmission of uncertainty shocks on income inequality: State-level
  evidence from the United States   In this paper, we explore the relationship between state-level household
income inequality and macroeconomic uncertainty in the United States. Using a
novel large-scale macroeconometric model, we shed light on regional disparities
of inequality responses to a national uncertainty shock. The results suggest
that income inequality decreases in most states, with a pronounced degree of
heterogeneity in terms of shapes and magnitudes of the dynamic responses. By
contrast, some few states, mostly located in the West and South census region,
display increasing levels of income inequality over time. We find that this
directional pattern in responses is mainly driven by the income composition and
labor market fundamentals. In addition, forecast error variance decompositions
allow for a quantitative assessment of the importance of uncertainty shocks in
explaining income inequality. The findings highlight that volatility shocks
account for a considerable fraction of forecast error variance for most states
considered. Finally, a regression-based analysis sheds light on the driving
forces behind differences in state-specific inequality responses.

37
The categories of this paper are: supr-con
14
The categories of this paper are: math-ph
30
The categories of this paper are: q-alg
16
The categories of this paper are: stat
36
The categories of this paper are: cmp-lg
24
The categories of this paper are: dg-ga
33
The categories of this paper are: plasm-ph
5
The categories of this paper are: gr-qc
12
The categories of this paper are: nucl-th
23
The categories of this paper are: solv-int
21
The categories of this paper are: adap-org
8
The categories of this paper are: hep-ex
22
The categories of this paper are: chao-dyn
6
The categories of this paper are: astro-ph
27
The categories of this paper are: comp-gas
1
The categories of this paper are: cs