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The Influence of the Economic Cycle on Eurozone Cross-Country Inequality Dynamics

Author

Listed:
  • Ivan Rubinic

    (University of Rijeka, Republic of Croatia)

  • Maks Tajnikar

    (University of Ljubljana, Slovenia)

Abstract

The cyclical influence on inequality is investigated using the model formulated from the theory of unequal labour exchange, based on disequilibrium prices, capital-labour ratios, efficiencies, disequilibrium factor incomes, and exploitation. Empirical employment of the abovementioned categories allowed for clustering Eurozone countries according to corresponding trends. Findings indicated country-level differentiability regarding the utilisation of cyclical advantages. Since the countries did not share a cycle tendentially, a consequential asymmetrical benefit distribution caused divergence and cross-country inequality. The implications of these conclusions are acute for Eurozone sustainability, which must revise its flawed economic foundations with built-in destabilisers that divide its members and oppose the goals of effective single market integration.

Suggested Citation

  • Ivan Rubinic & Maks Tajnikar, 2019. "The Influence of the Economic Cycle on Eurozone Cross-Country Inequality Dynamics," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(2), pages 267-290.
    • Handle: RePEc:seb:journl:v:17:y:2019:i:2:p:267-290
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    References listed on IDEAS

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    Cited by:

    1. John Marangos, 2023. "The Post-Keynesian Perspective and Policy Recommendations for the Greek Financial Crisis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(3), pages 423-447, September.

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    More about this item

    Keywords

    Economic Inequality; Economic Cycles; Unequal Labour Exchange;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • F02 - International Economics - - General - - - International Economic Order and Integration

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