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Joint determinants of fiscal policy, income inequality and economic growth

  • Muinelo-Gallo, Leonel
  • Roca-Sagalés, Oriol

This paper analyses the relationship between income inequality and economic growth through fiscal policy. To this end, we present and estimate two systems of structural equations with error components through which gross income inequality determines different fiscal policy outcomes, which subsequently affects the evolution of economic growth and net income inequality.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 30 (2013)
Issue (Month): C ()
Pages: 814-824

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Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:814-824
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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