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.
|Number of pages||6|
|Journal||Applied Economics Letters|
|Publication status||Published - 2012|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics