Fiscal consolidation programs and income inequality

Detalhes bibliográficos
Autor(a) principal: Brinca, Pedro
Data de Publicação: 2021
Outros Autores: Ferreira, Miguel H., Franco, Francesco, Holter, Hans A., Malafry, Laurence
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/106980
Resumo: 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.
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spelling Fiscal consolidation programs and income inequalityEconomics and EconometricsSDG 10 - Reduced InequalitiesWe 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.NOVA School of Business and Economics (NOVA SBE)RUNBrinca, PedroFerreira, Miguel H.Franco, FrancescoHolter, Hans A.Malafry, Laurence2022-02-27T01:30:55Z2021-022021-02-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/106980eng0020-6598PURE: 20030187https://doi.org/10.1111/iere.12482info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:51:43Zoai:run.unl.pt:10362/106980Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:40:49.746204Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Fiscal consolidation programs and income inequality
title Fiscal consolidation programs and income inequality
spellingShingle Fiscal consolidation programs and income inequality
Brinca, Pedro
Economics and Econometrics
SDG 10 - Reduced Inequalities
title_short Fiscal consolidation programs and income inequality
title_full Fiscal consolidation programs and income inequality
title_fullStr Fiscal consolidation programs and income inequality
title_full_unstemmed Fiscal consolidation programs and income inequality
title_sort Fiscal consolidation programs and income inequality
author Brinca, Pedro
author_facet Brinca, Pedro
Ferreira, Miguel H.
Franco, Francesco
Holter, Hans A.
Malafry, Laurence
author_role author
author2 Ferreira, Miguel H.
Franco, Francesco
Holter, Hans A.
Malafry, Laurence
author2_role author
author
author
author
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
RUN
dc.contributor.author.fl_str_mv Brinca, Pedro
Ferreira, Miguel H.
Franco, Francesco
Holter, Hans A.
Malafry, Laurence
dc.subject.por.fl_str_mv Economics and Econometrics
SDG 10 - Reduced Inequalities
topic Economics and Econometrics
SDG 10 - Reduced Inequalities
description 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.
publishDate 2021
dc.date.none.fl_str_mv 2021-02
2021-02-01T00:00:00Z
2022-02-27T01:30:55Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/106980
url http://hdl.handle.net/10362/106980
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0020-6598
PURE: 20030187
https://doi.org/10.1111/iere.12482
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
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dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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instacron:RCAAP
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