The Correlation Between Income Inequality and per Capita GDP in Georgia’s Counties

We use Reiterative Truncated Projected Least Squares (RTPLS) to estimate the correlation between real GDP per capita and income inequality for the 159 counties in Georgia, USA, from 2011 to 2021. RTPLS produces a separate slope estimate for every observation (data point), where differences in these slope estimates are due to omitted variables. Our measure of inequality is the ratio of household income at the 80th percentile divided by income at the 20th percentile. We find that the negative marg