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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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References

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Citations

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Cited by:
  1. Manoel Bittencourt, 2013. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," Working Papers 201301, University of Pretoria, Department of Economics.
  2. 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.
  3. Manoel Bittencourt, 2010. "Democracy, Populism and Hyperinflation(s): Some Evidence from Latin America," Working Papers 169, Economic Research Southern Africa.
  4. Bittencourt, Manoel, 2007. "Inflation and Financial Development: Evidence from Brazil," Proceedings of the German Development Economics Conference, Göttingen 2007 1, Verein für Socialpolitik, Research Committee Development Economics.
  5. Manoel F. Meyer Bittencourt, 2006. "Financial Development and Inequality: Brazil 1985-99," Working Papers 26, ECINEQ, Society for the Study of Economic Inequality.
  6. Manoel Bittencourt, 2009. "Polarisation, Populism and Hyperinflation[s]: Some Evidence from Latin America," Working Papers 200921, University of Pretoria, Department of Economics.
  7. 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.
  8. Manoel Bittencourt, 2010. "Inflation and Economic Growth in Latin America: Some Panel Time-Series Evidence," Working Papers 201011, University of Pretoria, Department of Economics.

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