Fiscal Adjustment and Income Inequality : Sub-national Evidence from Brazil

Azevedo, Joao Pedro ; David, Antonio C. ; Rodrigues Bastos, Fabiano ; Pineda, Emilio

World Bank, Washington, DC

关键词: ACCOUNTING;    ADJUSTMENT PERIOD;    ADJUSTMENT PROCESS;    ADVERSE EFFECT;    AMORTIZATION;   

DOI  :  10.1596/1813-9450-6945
RP-ID  :  WPS6945

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The paper combines state-level fiscaldata with household survey data to assess the links betweensub-national fiscal policy and income inequality in Brazilover the period 1995-2011. The results indicate that atighter fiscal stance at the sub-national level is notassociated with a deterioration in inequality measures. Thisfinding contrasts with the conclusions of several papers inthe burgeoning literature on the effects of fiscalconsolidation on inequality using national data for OECDeconomies. In addition, the authors find that a tighterstance is typically positively associated with a measure of"shared prosperity". Hence, the results cautionagainst extrapolating policy implications of the literaturefocusing on advanced economies to other settings.