Inflation and Income Distribution
AbstractThis paper examines the effects of inflation and associated financial instability on income distribution. Using both panel and single-country time-series models, the level of inflation, inflation variability, and the variability of the nominal exchange rate are shown to increase overall income equality. Looking at disaggregate measures of income distribution, the issue as to whether inflation is a progressive or a regressive tax is found to be negatively correlated with the level of development and the sophistication of the financial structure. The paper argues that these results point toward financial variables as a partial way of rectifying the generally poor explanatory power of both cross-country, panel, and time-series models of income distribution.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.
Volume (Year): 50 (2000)
Issue (Month): 4 (April)
inflation; income distribution; Kuznets hypothesis;
Other versions of this item:
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- O'Reilly, B., 1998. "The Benefits of Low Inflation: Taking Shock "A nickel ain't worth a dime any more" [Yogi Berra]," Technical Reports 83, Bank of Canada.
- Niehues, Judith, 2010. "Social Spending Generosity and Income Inequality: A Dynamic Panel Approach," IZA Discussion Papers 5178, Institute for the Study of Labor (IZA).
- Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2012.
"Joint determinants of fiscal policy, income inequality and economic growth,"
Documentos de Trabajo basados en MonografÃas (students working papers)
12-04, Instituto de Economía - IECON.
- Muinelo-Gallo, Leonel & Roca-Sagalés, Oriol, 2013. "Joint determinants of fiscal policy, income inequality and economic growth," Economic Modelling, Elsevier, vol. 30(C), pages 814-824.
- Leonel Muinelo & Oriol Roca-Sagalés, 2011.
"Economic Growth and Inequality: The Role of Fiscal Policies,"
wpdea1105, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Leonel Muinelo‐Gallo & Oriol Roca‐Sagalés, 2011. "Economic Growth And Inequality: The Role Of Fiscal Policies," Australian Economic Papers, Wiley Blackwell, vol. 50(2-3), pages 74-97, 09.
- Heer, Burkhard & Süssmuth, Bernd, 2013.
"Tax bracket creep and its effects on income distribution,"
Journal of Macroeconomics,
Elsevier, vol. 38(PB), pages 393-408.
- Heer, Burkhard & Süssmuth, Bernd, 2013. "Tax bracket creep and its effects on income distribution," Working Papers 123, University of Leipzig, Faculty of Economics and Management Science.
- de Jong, Eelke, 2002. "Why are price stability and statutory independence of central banks negatively correlated? The role of culture," European Journal of Political Economy, Elsevier, vol. 18(4), pages 675-694, November.
- Smith, Douglas, 2001. "International evidence on how income inequality and credit market imperfections affect private saving rates," Journal of Development Economics, Elsevier, vol. 64(1), pages 103-127, February.
- Burkhard Heer & Bernd Süssmuth, 2003. "Cold Progression and its Effects on Income Distribution," CESifo Working Paper Series 951, CESifo Group Munich.
- Kenny, Geoff & McGettigan, Donal, 1997. "Low Inflation or Price Stability? A Look at the Issues," Research Technical Papers 3/RT/97, Central Bank of Ireland.
- Vassili Prokopenko & Paul Holden, 2001. "Financial Development and Poverty Alleviation," IMF Working Papers 01/160, International Monetary Fund.
- Judith Niehues, 2010. "Social Spending Generosity and Income Inequality: A Dynamic Panel Approach," SOEPpapers on Multidisciplinary Panel Data Research 336, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2008.
"Income distribution determinants and public spending efficiency,"
Working Paper Series
0861, European Central Bank.
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Income distribution determinants and public spending efficiency," Journal of Economic Inequality, Springer, vol. 8(3), pages 367-389, September.
- António Afonso & Ludger Schknecht & Vito Tanzi, 2008. "Income Distribution Determinants and Public Spending Efficiency," Working Papers Department of Economics 2008/05, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- He, Dong, 1999. "Turkey - Inflation and the Distribution of Income," MPRA Paper 9759, University Library of Munich, Germany.
- Ricardo Hausmann & Michael Gavin, 1996.
"Securing Stability and Growth in a Shock Prone Region: The Policy Challenge for Latin America,"
5919, Inter-American Development Bank.
- Ricardo Hausmann & Michael Gavin, 1996. "Securing Stability and Growth in a Shock Prone Region: The Policy Challenge for Latin America," Research Department Publications 4020, Inter-American Development Bank, Research Department.
- Chen,Derek Hung Chiat & Ranaweera,Thilakaratna & Storozhuk, Andriy, 2004. "The RMSM-S+P : a minimal poverty module for the RMSM-X," Policy Research Working Paper Series 3304, The World Bank.
- Majid Sameti & Leila Rafie, 2010. "Interaction of Income Distribution, Taxes and Economic Growth (The Case of Iran and Some Selected East Asian Countries)," Iranian Economic Review, Economics faculty of Tehran university, vol. 15(1), pages 67-81, winter.
- Stanley Fischer, 1996. "Why are central banks pursuing long-run price stability?," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-34.
- Ricardo Hausmann & Michael Gavin, 1996. "Asegurar la estabilidad y el crecimiento en una región propensa a las sacudidas: los retos de políticas para América Latina," Research Department Publications 4021, Inter-American Development Bank, Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova).
If references are entirely missing, you can add them using this form.