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.