Income Inequality and Fiscal Policy

Coady, David; Gupta, Sanjeev

doi:10.5089/9781475504828.006

Cited by 23 publications

(9 citation statements)

References 40 publications

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“…We find evidence that fiscal policy has played an important role in reducing inequality, especially in advanced economies where there was high income inequality before taxes and transfers. Furthermore, studies like Coady and Gupta ( 2012 ) reveal that fiscal policy reduced the Gini index of 25 OECD countries by almost a third in the period 1985- 2005. Also, we find in the literature that transfers and taxes reduced inequality and poverty in the period 2003–2012 (CEPAL & IEF, 2014 ).…”

Section: Datamentioning

confidence: 99%

Inequality Persistence of 21 OECD Countries from 1870 to 2020: Linear and Non-Linear Fractional Integration Approaches

Solarin¹,

Lafuente

Gil-Alana

et al. 2022

Soc Indic Res

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This paper investigates inequality persistence in a group of 21 OECD countries using linear and non-linear fractionally integrated methods. Using linear models, the results show that the series are strongly persistent which implies lack of average reversal and permanency of shocks. Mean reversion is only found in the case of Finland and partial evidence of mean reversion is detected for Belgium, Greece, Austria and the Netherlands. The results are similar using non-linear methods. Mean reversion is only found in the case of Finland, Belgium, Greece and Spain. Although, most countries show no evidence of non-linear structures except for four countries, namely, Finland, Spain, the United Kingdom and the United States. The implications of the empirical findings are reported at the end of the manuscript.

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Section: Datamentioning

confidence: 99%

Inequality Persistence of 21 OECD Countries from 1870 to 2020: Linear and Non-Linear Fractional Integration Approaches

Solarin¹,

Lafuente

Gil-Alana

et al. 2022

Soc Indic Res

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“…This is potentially problematic as the value people receive would depend on the quality of the services provided. In Online Appendix F, I investigate quality differences across states using the Indian Human Development Surveys for 2004-2012(Desai et al, 2009. Using these data, I show that states with relatively high price levels do not only have access to more schools and health clinics, but they also tend to have facilities of higher quality, as measured by a large set of physical attributes.…”

Section: Quality Of Public Provisionmentioning

confidence: 99%

“…Second, it is also well documented that levels of public provision tend to be higher in rich countries (Easterly and Rebelo, 1993; Coady and Gupta, 2012; Ortiz‐Ospina and Roser, 2016). This relationship is related to the so‐called Wagner's Law (Wagner and Weber, 1977), which states that the public sector will tend to grow in relative importance as economies develop.…”

Section: Mechanisms Linking Price Levels and Public Provisionmentioning

confidence: 99%

“…In the cross‐country setting, it is well documented that prices vary with levels of income (Kravis et al., 1978; Summers and Heston, 1991; Alessandria and Kaboski, 2011; World Bank, 2020), and many of the underlying mechanisms in this relationship are likely to apply within countries (Deaton and Dupriez, 2011). The supply of public services typically also rises with income, because the demand for services increases as people become richer and because governments are able to afford more provision (Easterly and Rebelo, 1993; Coady and Gupta, 2012; Ortiz‐Ospina and Roser, 2016). The argument does not depend on a particular channel, however.…”

Section: Introductionmentioning

confidence: 99%

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To adjust or not to adjust? Spatial price variation and the measurement of poverty*

Kjelsrud

2022

Scandinavian J Economics

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Publicly provided goods and services influence household consumption levels. Consumption estimates based solely on private expenses are therefore biased. Given that we usually are unable to account for consumption from public provision, I argue that we often should ignore spatial price differences in inter‐household comparisons. The key reason is that prices and levels of public provision are likely to be positively correlated across space. I provide a simple framework to evaluate this, and I apply it to the measurement of poverty in India. The analysis reveals that a uniform poverty line might be preferable to the currently used price‐adjusted poverty lines.

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“…Increasing income inequality due to such reasons has reached a worrying level for policy makers in many economies. Coady and Gupta (2012) expressed the factors that have increased income inequality since 1980 as follows:…”

Section: Introductionmentioning

confidence: 99%

Türkiye’de Bölgeler Arasında Gelir Eşitsizliği Yakınsaması Var Mı? Panel Veri Analizi

Konat

2021

Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi

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In recent years, with globalization and technological change, it is seen that income inequality has increased in many economies. Therefore, the concept of income inequality is one of the issues that attract attention by researchers. There are many studies on income inequality in the literature. In terms of fiscal policy, the relationship with economic growth is tested, or with financial development. In this study, the validity of the stochastic convergence hypothesis of income inequality is desirable to test for interregional in Turkey. For this purpose, the stationarity test of income inequality was carried out with the panel unit root test. Coefficient of income inequality which expressed as Gini covers the period 2006-2019 and this coefficient to Turkey Statistical Institute has been accessed from the official database. As a result of the panel unit root analysis performed for 12 Regions (Level 1) according to the classification of statistical region units, it was concluded that the Gini coefficient was not stationary. So the hypothesis of convergence between regions in Turkey is not available and there is an imbalance in the distribution of income. Therefore, a lot of work falls on policy makers to ensure justice in income distribution.

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Income Inequality and Fiscal Policy

Cited by 23 publications

References 40 publications

Inequality Persistence of 21 OECD Countries from 1870 to 2020: Linear and Non-Linear Fractional Integration Approaches

Inequality Persistence of 21 OECD Countries from 1870 to 2020: Linear and Non-Linear Fractional Integration Approaches

To adjust or not to adjust? Spatial price variation and the measurement of poverty*

Türkiye’de Bölgeler Arasında Gelir Eşitsizliği Yakınsaması Var Mı? Panel Veri Analizi

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