Inequality, growth and public spending in Central, East and Southeast Europe
AbstractThe article analyses the joint determinants of inequality and growth with a special emphasis on public spending structures in transition. We find especially government expenditures on subsidies to be negatively correlated with both inequality and growth, as more generally government expenditures seem to act counter-cyclically and inequality reducing. Also, there is a mutual benefit of low real interest rates, to both equity and economic development. This hints to the fact that in the late 1990's and early 2000's the European integration process allowed several of the transition economies to aim for the best of both worlds: equity and economic development.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 221.
Length: 26 pages
Date of creation: 2011
Date of revision:
Inequality; Government Expenditures; Economic Growth; Transition;
Other versions of this item:
- Mario Holzner, 2010. "Inequality, Growth and Public Spending in Central, East and Southeast Europe," wiiw Balkan Observatory Working Papers 87, The Vienna Institute for International Economic Studies, wiiw.
- Mario Holzner, 2010. "Inequality, Growth and Public Spending in Central, East and Southeast Europe," wiiw Working Papers 71, The Vienna Institute for International Economic Studies, wiiw.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H5 - Public Economics - - National Government Expenditures and Related Policies
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- P2 - Economic Systems - - Socialist Systems and Transition Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-14 (All new papers)
- NEP-FDG-2011-11-14 (Financial Development & Growth)
- NEP-LTV-2011-11-14 (Unemployment, Inequality & Poverty)
- NEP-TRA-2011-11-14 (Transition Economics)
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