6533b830fe1ef96bd12965c3
RESEARCH PRODUCT
Income inequality, fiscal stimuli and political (in)stability
João Tovar JallesVitor CastroVitor CastroRicardo M. SousaRicardo M. SousaLuca Agnellosubject
MacroeconomicsEconomics and EconometricsInequalitymedia_common.quotation_subjecthealth care facilities manpower and servicesPolitical environmentStability (learning theory)Social SciencesInstitutional qualityPoliticsExpansionary policieEconomic inequalityIncome distributionAccounting0502 economics and business050602 political science & public administrationEconomicsTobit model050207 economicshealth care economics and organizationsmedia_commonTobit regressionGovernment05 social sciencesCiências Sociais::Economia e GestãoSettore SECS-P/02 Politica Economicasocial sciences0506 political scienceFiscal stimuliExpansionary policies PoliticalExpansionary policiesIncome distribution:Economia e Gestão [Ciências Sociais]FinancePublic financedescription
Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises. However, such adverse distributional effect is reduced when expansionary or increasingly expansionary fiscal stimuli episodes or successful fiscal stimuli programs are put in place.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2016-11-04 |