Azevedo, Joao Pedro
Fiscal Adjustment and Income Inequality Sub-National Evidence from Brazil / Joao Pedro Azevedo [electronic resource] : Joao Pedro Azevedo - Washington, D.C., The World Bank, 2014 - 1 online resource (32 p.) - Policy research working papers. World Bank e-Library. .
The paper combines state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequality measures. This finding contrasts with the conclusions of several papers in the burgeoning literature on the effects of fiscal consolidation on inequality using national data for OECD economies. In addition, the authors find that a tighter stance is typically positively associated with a measure of "shared prosperity". Hence, the results caution against extrapolating policy implications of the literature focusing on advanced economies to other settings.
10.1596/1813-9450-6945
Debt Markets
Economic Theory & Research
Finance and Financial Sector Development
Fiscal Adjustment
Fiscal Policy
Income Inequality
Inequality
Macroeconomics and Economic Growth
Poverty Impact Evaluation
Poverty Reduction
Fiscal Adjustment and Income Inequality Sub-National Evidence from Brazil / Joao Pedro Azevedo [electronic resource] : Joao Pedro Azevedo - Washington, D.C., The World Bank, 2014 - 1 online resource (32 p.) - Policy research working papers. World Bank e-Library. .
The paper combines state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequality measures. This finding contrasts with the conclusions of several papers in the burgeoning literature on the effects of fiscal consolidation on inequality using national data for OECD economies. In addition, the authors find that a tighter stance is typically positively associated with a measure of "shared prosperity". Hence, the results caution against extrapolating policy implications of the literature focusing on advanced economies to other settings.
10.1596/1813-9450-6945
Debt Markets
Economic Theory & Research
Finance and Financial Sector Development
Fiscal Adjustment
Fiscal Policy
Income Inequality
Inequality
Macroeconomics and Economic Growth
Poverty Impact Evaluation
Poverty Reduction