2134/24127 Luca Agnello Luca Agnello Vitor Castro Vitor Castro Joao Tovar Jalles Joao Tovar Jalles Ricardo M. Sousa Ricardo M. Sousa Income inequality, fiscal stimuli and political (in)stability Loughborough University 2017 Income distribution Fiscal stimuli Expansionary policies Political environment Institutional quality Tobit regression Economics not elsewhere classified 2017-02-16 09:05:10 Journal contribution https://repository.lboro.ac.uk/articles/journal_contribution/Income_inequality_fiscal_stimuli_and_political_in_stability/9494279 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.