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

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
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
Form Of Item

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