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Inequality, prosperity, and fiscal policy: A case for caution in interpreting income distributions

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  • Phillip W. Magness

Abstract

This article examines recent developments in the long-term measurement of top income shares for several countries. While several works have used these data to suggest a causal link between inequality and fiscal policy, I argue for greater caution when asserting this prescriptive link. Issues of how we interpret measured inequality as well as the reliability of underlying source data suggest unresolved uncertainties about the long-posited connection between taxation and inequality.

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  • Phillip W. Magness, 2019. "Inequality, prosperity, and fiscal policy: A case for caution in interpreting income distributions," The International Trade Journal, Taylor & Francis Journals, vol. 33(1), pages 16-30, January.
    • Handle: RePEc:taf:uitjxx:v:33:y:2019:i:1:p:16-30
    DOI: 10.1080/08853908.2018.1517063
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    Cited by:

    1. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.

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