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Income Inequality: Does Inflation Matter?

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  • By Ales BulÌr

    (International Monetary Fund)

Abstract

This paper contributes to the income inequality literature that is based on the traditional Kuznets model. Level of development, state employment, fiscal redistribution, and price stability are found to improve income inequality in a given country. The positive impact of price stability on income distribution is nonlinear. The reduction in inflation from hyperinflationary levels significantly lowers income inequality, while further reduction toward a very low level of inflation seems to bring about negligible additional gains in the Gini coefficient. Copyright 2001, International Monetary Fund

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal IMF Staff Papers.

Volume (Year): 48 (2001)
Issue (Month): 1 ()
Pages: 5

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Handle: RePEc:pal:imfstp:v:48:y:2001:i:1:p:5

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Cited by:
  1. Manoel BITTENCOURT, 2009. "Macroeconomic Performance And Inequality: Brazil, 1983-94," The Developing Economies, Institute of Developing Economies, vol. 47(1), pages 30-52.
  2. Jalil, Abdul, 2012. "Modeling income inequality and openness in the framework of Kuznets curve: New evidence from China," Economic Modelling, Elsevier, vol. 29(2), pages 309-315.
  3. Milanovic, Branko & Ersado, Lire, 2008. "Reform and inequality during the transition: An analysis using panel household survey data, 1990-2005," MPRA Paper 7459, University Library of Munich, Germany.
  4. Bircan, Cagatay & Brück, Tilman & Vothknecht, Marc, 2010. "Violent Conflict and Inequality," IZA Discussion Papers 4990, Institute for the Study of Labor (IZA).
  5. Joël Hellier & Stéphane Lambrecht, 2012. "Inequality, growth and welfare: The main links," Working Papers 258, ECINEQ, Society for the Study of Economic Inequality.
  6. David Aristei & Cristiano Perugini, 2011. "Speed and Sequencing of Transition Reforms and Income Inequality: a Panel Data Analysis," Working Papers 302, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  7. 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.
  8. Cysne, Rubens P. & Maldonado, Wilfredo L. & Monteiro, Paulo Klinger, 2005. "Inflation and income inequality: A shopping-time approach," Journal of Development Economics, Elsevier, vol. 78(2), pages 516-528, December.

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