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Speed and Sequencing of Transition Reforms and Income Inequality: A Panel Data Analysis

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  • David Aristei
  • Cristiano Perugini

Abstract

type="main"> An extensive literature has analyzed the economic effects of transition patterns in Central and Eastern European and former Soviet Union countries. With few recent exceptions, analysis of the impacts of speed and sequencing of reforms has not concerned the dynamics of income inequality. In this paper we analyze the heterogeneous effects of transition reforms on inequality by explicitly considering their speed and sequencing. To this aim we identify eight transition models in which the 27 countries considered are classified. The dynamic panel-data analysis for the period 1989–2009 reveals that balanced transition patterns, which favored a coordination of reforms especially in specific fields, were relatively less pro-inequality.

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  • David Aristei & Cristiano Perugini, 2014. "Speed and Sequencing of Transition Reforms and Income Inequality: A Panel Data Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 542-570, September.
    • Handle: RePEc:bla:revinw:v:60:y:2014:i:3:p:542-570
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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