Fiscal Consolidation Programs and Income Inequality

Autor:	Brinca, Pedro, Ferreira, Miguel H., Franco, Francesco, Holter, Hans A., Malafry, Laurence
Rok vydání:	2021
Předmět:	Wirtschaft Economics EU-SILC Öffentliche Finanzen und Finanzwissenschaft Public Finance Haushaltskonsolidierung Einkommensunterschied öffentlicher Haushalt budget consolidation difference in income public budget
Zdroj:	International Economic Review, 62, 1, 405-460
Druh dokumentu:	Zeitschriftenartikel<br />journal article
ISSN:	1468-2354
DOI:	10.1111/iere.12482
Popis:	We document a strong empirical relationship between higher income inequality and stronger recessive impacts of fiscal consolidation episodes across time and space. To explain this finding, we develop a life-cycle economy with uninsurable income risk. We calibrate our model to match key characteristics of several European economies, including inequality and fiscal structures, and study the effects of fiscal consolidation programs. In our model, higher income risk induces precautionary savings behavior, which decreases the proportion of credit-constrained agents in the economy. These agents have less elastic labor supply responses to fiscal consolidations, which explain the correlation with inequality in the data.
Databáze:	SSOAR – Social Science Open Access Repository
Externí odkaz:	https://www.ssoar.info/ssoar/handle/document/85079 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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