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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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Bibliographic Info

Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 130.

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Length: 24 pages
Date of creation: 16 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:130

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Keywords: Inequality; inflation; indexation coverage; minimum wage;

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Citations

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Cited by:
  1. Manoel Bittencourt, 2007. "Inflation and Financial Development: Evidence from Brazil," Ibero America Institute for Econ. Research (IAI) Discussion Papers, Ibero-America Institute for Economic Research 165, Ibero-America Institute for Economic Research.
  2. Manoel F. Meyer Bittencourt, 2006. "Financial Development and Inequality: Brazil 1985-99," Bristol Economics Discussion Papers 06/582, Department of Economics, University of Bristol, UK.
  3. Manoel Bittencourt, 2012. "Democracy, populism and hyperinflation: some evidence from Latin America," Economics of Governance, Springer, Springer, vol. 13(4), pages 311-332, December.
  4. Manoel Bittencourt, 2009. "Polarisation, Populism and Hyperinflation[s]: Some Evidence from Latin America," Working Papers 200921, University of Pretoria, Department of Economics.
  5. Manoel Bittencourt, 2013. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," Working Papers 361, Economic Research Southern Africa.
  6. 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.
  7. Manoel Bittencourt, 2010. "Inflation and Economic Growth in Latin America: Some Panel Time-Series Evidence," Working Papers 201011, University of Pretoria, Department of Economics.
  8. João Pedro Azevedo & Antonio David & Fabiano Rodrigues Bastos & Emilio Pineda, 2014. "Fiscal Adjustment and Income Inequality: Sub-national Evidence from Brazil," IMF Working Papers 14/85, International Monetary Fund.

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