European Parliament Library

Inflation, Inequality, and Social Conflict, Christopher Crowe

Abstract
This paper presents and then tests a political economy model to analyze the observed positive relationship between income inequality and inflation. The model's key features are unequal access to both inflation-hedging opportunities and the political process. The model predicts that inequality and 'elite bias' in the political system interact to create incentives for inflation. The paper's empirical section focuses on this predicted interaction effect. The identification strategy involves using the end of the Cold War as a source of exogenous variation in the political environment. It finds robust evidence in support of the model
Table Of Contents
""Contents""; ""I. Introduction""; ""II. Household Optimization""; ""III. Political Optimization""; ""IV. Empirical Analysis""; ""V. Concluding Remarks""
Language
eng
Literary Form
non fiction
Edition
1st ed.
Note
"June 2006."
Physical Description
1 online resource (39 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452776378

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