Income inequality, fiscal stimuli and political (in)stability
journal contribution
posted on 2017-02-16, 09:05 authored by Luca Agnello, Vitor CastroVitor Castro, Joao Tovar Jalles, Ricardo M. SousaUsing 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.
Funding
Castro and Sousa acknowledge that this work has been financed by Operational Programme for Competitiveness Factors—COMPETE and by National Funds through the FCT—Portuguese Foundation for Science and Technology within the remit of the project “FCOMP-01-0124-FEDER-037268 (PEst-C/EGE/UI3182/2013)”. Castro also wishes to thank the financial support provided by the Portuguese Foundation for Science and Technology under the research grant SFRH/BSAB/113588/2015 (partially funded by COMPETE, QREN and FEDER).
History
School
- Business and Economics
Department
- Economics
Published in
International Tax and Public FinancePages
1 - 28Citation
AGNELLO, L. ... et al, 2016. Income inequality, fiscal stimuli and political (in)stability. International Tax and Public Finance, 24 (3), pp. 484–511.Publisher
© SpringerVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2016-10-17Publication date
2016-11-04Notes
The final publication is available at link.springer.com via http://dx.doi.org/10.1007/s10797-016-9428-xISSN
0927-5940eISSN
1573-6970Publisher version
Language
- en
