European Parliament Library

The Distributional Effects of Fiscal Consolidation, Laurence Ball, Davide Furceri, Daniel Leigh, Prakash Loungani

Abstract
This paper examines the distributional effects of fiscal consolidation. Using episodes of fiscal consolidation for a sample of 17 OECD countries over the period 1978–2009, we find that fiscal consolidation has typically had significant distributional effects by raising inequality, decreasing wage income shares and increasing long-term unemployment. The evidence also suggests that spending-based adjustments have had, on average, larger distributional effects than tax-based adjustments
Table Of Contents
Cover; Contents; I. Introduction; II. Data; A. Inequality, Income Shares and Unemployment; B. Fiscal Consolidation Episodes; C. Inequality and Fiscal Consolidation; III. Empirical Methodology; IV. Results; A. Gini Coefficient for Disposable Income; Spending versus taxes-based consolidation episodes; B. Wage vs. Profit and Rent Income; C. Short vs. Long-term Unemployment; V. Conclusions and Policy Implications; References; Figures; 1. Cumulative Change in the Gini Coefficient before and after Consolidation Measures
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781475567205

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