Fiscall Adjustments and Income Inequality:A First Assessment

Luca Agnello () and Ricardo Sousa

No 19/2012, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: Using a statistical approach to identify fiscal adjustments, we find that fiscal consolidation appears to shorten the income gap. Fiscal austerity plans that succeed in bringing public debt to a sustainable path seem to be more likely to reduce inequality. Expansionary fiscal adjustments are particularly important to promote changes in the income distribution.

Keywords: Inequality; fiscal consolidation; Kuznets curve; openness. (search for similar items in EconPapers)
JEL-codes: G18 H10 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ltv and nep-pbe
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Citations: View citations in EconPapers (18)

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