{"id":1218,"date":"2021-06-01T18:45:15","date_gmt":"2021-06-01T21:45:15","guid":{"rendered":"https:\/\/madeusp.com.br\/?post_type=made_publication&p=1218"},"modified":"2024-11-01T19:23:29","modified_gmt":"2024-11-01T22:23:29","slug":"effects-of-fiscal-consolidation-on-income-inequality-narrative-evidence-from-south-america","status":"publish","type":"made_publication","link":"https:\/\/madeusp.com.br\/en\/publications\/articles\/effects-of-fiscal-consolidation-on-income-inequality-narrative-evidence-from-south-america\/","title":{"rendered":"Effects of fiscal consolidation on income inequality: narrative evidence from South America"},"content":{"rendered":"

Based on a nar\u00adra\u00adti\u00adve data\u00adset cons\u00adtruc\u00adted by David and Leigh (2018) that covers nine South Ame\u00adri\u00adcan eco\u00adno\u00admi\u00ades in the peri\u00adod 1982\u20132017, this paper esti\u00adma\u00adtes dyna\u00admic effects of fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adons on inco\u00adme ine\u00adqua\u00adlity from Jor\u00add\u00e1 (2005)\u2019s local pro\u00adjec\u00adti\u00adons method. Results sug\u00adgest that fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adons lead to a rise in inco\u00adme ine\u00adqua\u00adlity in all spe\u00adci\u00adfi\u00adca\u00adti\u00adons and data panels. When decom\u00adpo\u00adsing fis\u00adcal shocks, spen\u00adding-based fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adons appe\u00adar to sig\u00adni\u00adfi\u00adcan\u00adtly incre\u00ada\u00adse the Gini index, whi\u00adle tax-based fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adons do not show sta\u00adtis\u00adti\u00adcally sig\u00adni\u00adfi\u00adcant effects on inco\u00adme ine\u00adqua\u00adlity. The rise in the Gini index for dis\u00adpo\u00adsa\u00adble inco\u00adme cau\u00adsed by a spen\u00adding-based fis\u00adcal adjust\u00adment of 1% of GDP vari\u00ades betwe\u00aden 1.74 and 3.22% in five years depen\u00adding on the selec\u00adted data panel (coun\u00adtry-years). The mag\u00adni\u00adtu\u00adde of this effect is higher than in most of the pre\u00advi\u00adous stu\u00addi\u00ades car\u00adri\u00aded out for OECD countries.<\/p>\n

Keywords: inco\u00adme ine\u00adqua\u00adlity; fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adon; fis\u00adcal aus\u00adte\u00adrity; South Ame\u00adri\u00adca; local projections.<\/p>\n

JEL: D30; D63; E60; E62.<\/p>\n","protected":false},"excerpt":{"rendered":"

Based on a nar\u00adra\u00adti\u00adve data\u00adset cons\u00adtruc\u00adted by David and Leigh (2018) that covers nine South Ame\u00adri\u00adcan eco\u00adno\u00admi\u00ades in the peri\u00adod 1982\u20132017, this paper esti\u00adma\u00adtes dyna\u00admic effects of fis\u00adcal con\u00adso\u00adli\u00adda\u00adti\u00adons on inco\u00adme ine\u00adqua\u00adlity from Jor\u00add\u00e1 (2005)\u2019s local pro\u00adjec\u00adti\u00adons method.<\/p>\n","protected":false},"template":"","tags":[138,137,136,140,139],"made_publication_type":[78],"class_list":["post-1218","made_publication","type-made_publication","status-publish","hentry","tag-fiscal-austerity-en","tag-fiscal-consolidation-en","tag-income-inequality-en","tag-local-projections-en","tag-south-america-en","made_publication_type-working-papers"],"acf":[],"yoast_head":"\nEffects of fiscal consolidation on income inequality: narrative evidence from South America — Made<\/title>\n<meta name=\"robots\" content=\"index, follow, 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