Inequality, Democracy and Taxation: Lessons from the Post-Communist Transition
AbstractUsing data for post-communist economies (1989-2002), we examine the determinants of income inequality. We find a strong positive association between equality and tax collection but note that this relationship is significantly stronger under authoritarian regimes than under democracies. We also discover that early macroeconomic stabilisation resulted in lower inequality; we confirm that education fosters equality and find that larger countries are prone to higher levels of inequality.
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Bibliographic InfoPaper provided by CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL) in its series Working Papers with number 74.
Length: 35 pages
Date of creation: Mar 2007
Date of revision:
income inequality; democracy; authoritarian regimes; taxes; transition;
Find related papers by JEL classification:
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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- Alexei Izyumov & Trista Claxon, 2009. "Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective," Journal of Economic Issues, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 43(3), pages 733-758, September.
- Jens Holscher & Cristiano Perugini & Fabrizio Pompei, 2011. "Wage inequality, labour market flexibility and duality in Eastern and Western Europe," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 23(3), pages 271-310.
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