Domestic vs. External Economic Sectors and the Political Process: Insights from Greece

Petrakos, George; Ρόντος, Κώστας; Salvati, Luca; Vavoura, Chara; Vavouras, Ioannis

doi:10.3390/economies10080198

Cited by 4 publications

(2 citation statements)

References 74 publications

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“…Finally, from a cross-country study similar to Petrakos et al (2023) of the four EU member states that were hit hardest by the global crisis of 2007-2009, namely Portugal, Italy, Greece, and Spain, it could be possible to draw interesting inferences regarding the impact of different austerity measures on the income distribution and to propose fewer equality-distorting alternatives for the future. Microeconomic determinants of poverty and income inequality have also been found to be of major importance, particulartly for the design of appropriate policies (see for example Naschold (2009)).…”

Section: Discussionmentioning

confidence: 99%

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

et al. 2023

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We consider the impact of the two recent economic crises, one that resulted from the great recession of 2007–2009 and one following the COVID-19 pandemic, on income inequality and the risk of poverty in Greece. To this end, we also investigate the key macroeconomic variables affecting the Greek income distribution. We find that alternative measures of inequality and relative poverty have deteriorated during the years of crises, implying that the country’s response to economic shocks has been particularly harmful for its more disadvantaged citizens. Regarding the variables affecting the income distribution, we show that income inequality and the risk of poverty increase with growth, implying that the benefits of growth, and burdens of recession, are distributed unequally among members of the Greek society. Moreover, inequality appears to increase with unemployment and decrease with the share of wages and salaries in total income. This finding highlights the importance of labour market regulations and workers’ welfare for attaining equality. Finally, we provide evidence that, during pre-election periods, income inequality is reduced, meaning that the political budget cycles, which are characteristic of the Greek economy, generate gains in terms of equality, but these gains are short-lived and mainly benefit the middle bracket of the income distribution.

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Section: Discussionmentioning

confidence: 99%

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

et al. 2023

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“…The existence of political fiscal cycles or PBCs in PIGS countries was also tested in our study. According to the literature (Petrakos et al 2022a(Petrakos et al , 2022b, PBCs are associated with the direct efforts of governments to maximise their chances of re-election or to minimise the risk of votes' loss by pursuing opportunistic expansive fiscal policies in the last months before the elections. These policies are undertaken with the sole aim to give voters who are supposed to have a "myopic perspective" a false impression (Bonfiglioli and Gancia 2013).…”

Section: Figure 1 Government Consolidated Gross Debt As a Percentage ...mentioning

confidence: 99%

The Impact of Economic, Political, and Institutional Factors on Budget Balances of the Heavily Indebted European Countries

PETRAKOS¹,

RONTOS²,

SALVATI³

et al. 2023

JURA

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The present study identifies socioeconomic, political, and institutional factors that shape extensive budget unbalances in four European Mediterranean countries (Portugal, Italy, Greece, and Spain), causing significant deficits and a public debt equal to (or above) 120% of their respective Gross Domestic Product (GDP) at the end of 2020. Regression analysis, run on official statistics, demonstrates that the dynamics of fiscal deficits in these countries are largely heterogeneous. This outcome suggests that the various factors and contexts considered here exert different effects in each country. Political factors played an important role in Greece, being less important in Spain, and having a negligible role in both Italy and Portugal. On the contrary, institutional factors were recognized as particularly important in Greece, Italy, and Portugal. Although important almost everywhere, the magnitude of the impact of economic factors also differed across the four countries.

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The Detrimental Impact of Political Budget Cycles on the Greek Economy

Petrakos,

Rontos,

Vavoura

et al. 2024

The Role of the Public Sector in Building Social and Economic Resilience

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Domestic vs. External Economic Sectors and the Political Process: Insights from Greece

Cited by 4 publications

References 74 publications

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

The Impact of Economic, Political, and Institutional Factors on Budget Balances of the Heavily Indebted European Countries

The Detrimental Impact of Political Budget Cycles on the Greek Economy

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