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Income Inequality and Inflation in the EU

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  • Eleftherios Thalassinos
  • Erginbay Ugurlu
  • Yusuf Muratoglu

Abstract

The main aim of this research is to analyze the relationship between income inequality and inflation in 13 European countries for the period 2000 to 2009 using panel data methodology. The GINI coefficient has been used to measure the income inequality while the inflation rate, the growth rate, the employment level and the openness of the economies have been used as independent variables. The results support the hypothesis that inflation has a positive significant effect on income inequality.

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Bibliographic Info

Article provided by European Research Studies Journal in its journal European Research Studies Journal.

Volume (Year): XV (2012)
Issue (Month): 1 ()
Pages: 127-140

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Handle: RePEc:ers:journl:v:xv:y:2012:i:1:p:127-140

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Related research

Keywords: Inflation; Gini Coefficient; Income Inequality; European Union; Panel Data;

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References

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  1. Christopher Crowe, 2004. "Inflation, Inequality and Social Conflict," CEP Discussion Papers dp0657, Centre for Economic Performance, LSE.
  2. Graciela L. Kaminsky & Alfredo Pereira, 1994. "The debt crisis: lessons of the 1980's for the 1990's," International Finance Discussion Papers 481, Board of Governors of the Federal Reserve System (U.S.).
  3. Al-Marhubi, Fahim, 1997. "A note on the link between income inequality and inflation," Economics Letters, Elsevier, vol. 55(3), pages 317-319, September.
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  13. Cysne, Rubens Penha & Maldonado, Wilfredo L. & Monteiro, Paulo Klinger, 2004. "Inflation and Income Inequality: A Shopping-Time Aproach," Economics Working Papers (Ensaios Economicos da EPGE) 566, FGV/EPGE Escola Brasileira de Economia e Finan├žas, Getulio Vargas Foundation (Brazil).
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  16. William Levernier & Dan S. Rickman & Mark D. Partridge, 1995. "Variation in U.S. State Income Inequality: 1960-1990," International Regional Science Review, , vol. 18(3), pages 355-378, July.
  17. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  18. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152.
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