Fiscal adjustments and income inequality: a first assessment
- Authors: Agnello, L; Sousa, R
- Publication year: 2012
- Type: Articolo in rivista (Articolo in rivista)
- Key words: Inequality, fiscal consolidation, Kuznets curve, openness
- OA Link: http://hdl.handle.net/10447/66151
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.