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Macroeconomic Performance and Inequality: Brazil 1983-94

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  • Manoel F. Meyer Bittencourt

    (University of Bristol / UK)

Abstract

We examine how macroeconomic performance, mainly in the role of inflation, affected earnings inequality during the 1980’s and early 90’s in regional Brazil. The evidence shows that the high and volatile inflation rates existent at the time, combined with incomplete indexation coverage, had a regressive and significant effect on inequality. The results, based on panel time series T>N data and analysis, are robust for different concepts of inflation, inequality measures, estimators and specifications. Hence, sound macroeconomic policies, which keep inflation low and stable in the long run, are to be a necessary first step of any policy implemented to alleviate high inequality, and improve welfare in Brazil.

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  • Manoel F. Meyer Bittencourt, 2005. "Macroeconomic Performance and Inequality: Brazil 1983-94," Ibero America Institute for Econ. Research (IAI) Discussion Papers 130, Ibero-America Institute for Economic Research.
    • Handle: RePEc:got:iaidps:130
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    Cited by:

    1. Bittencourt, Manoel, 2011. "Inflation and financial development: Evidence from Brazil," Economic Modelling, Elsevier, vol. 28(1), pages 91-99.
    2. Manoel Bittencourt, 2013. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," Working Papers 361, Economic Research Southern Africa.
    3. Manoel Bittencourt, 2009. "Polarisation, Populism and Hyperinflation[s]: Some Evidence from Latin America," Working Papers 200921, University of Pretoria, Department of Economics.
    4. Bittencourt, Manoel, 2012. "Inflation and economic growth in Latin America: Some panel time-series evidence," Economic Modelling, Elsevier, vol. 29(2), pages 333-340.
    5. Azevedo, Joao Pedro & David, Antonio C. & Bastos, Fabiano Rodrigues & Pineda, Emilio, 2014. "Fiscal adjustment and income inequality : sub-national evidence from Brazil," Policy Research Working Paper Series 6945, The World Bank.
    6. Manoel Bittencourt, 2011. "Is Copacabana Still the ‘Little Princess of the Sea’?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(01), pages 11-16, March.
    7. Manoel F. Meyer Bittencourt, 2006. "Financial Development and Inequality: Brazil 1985-99," Working Papers 26, ECINEQ, Society for the Study of Economic Inequality.
    8. Bittencourt, Manoel, 2010. "Democracy, Populism and Hyperinflation[s]: Evidence from Latin America," Proceedings of the German Development Economics Conference, Hannover 2010 47, Verein für Socialpolitik, Research Committee Development Economics.
    9. Manoel Bittencourt, 2014. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," International Symposia in Economic Theory and Econometrics, in: Macroeconomic Analysis and International Finance, volume 23, pages 37-58, Emerald Group Publishing Limited.
    10. Binder, Carola, 2019. "Inequality and the inflation tax," Journal of Macroeconomics, Elsevier, vol. 61(C), pages 1-1.
    11. Manoel Bittencourt, 2012. "Democracy, populism and hyperinflation: some evidence from Latin America," Economics of Governance, Springer, vol. 13(4), pages 311-332, December.

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    More about this item

    Keywords

    Inequality; inflation; indexation coverage; minimum wage;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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