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Income Inequality and Inflation in the EU

  • Eleftherios Thalassinos
  • Erginbay Ugurlu
  • Yusuf Muratoglu

The main aim of this research is to analyze the relationship between income inequality and inflation in 13 European countries for the period 2000 to 2009 using panel data methodology. The GINI coefficient has been used to measure the income inequality while the inflation rate, the growth rate, the employment level and the openness of the economies have been used as independent variables. The results support the hypothesis that inflation has a positive significant effect on income inequality.

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File URL: http://www.ersj.eu/repec/ers/papers/12_1_p7.pdf
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Article provided by European Research Studies Journal in its journal European Research Studies Journal.

Volume (Year): XV (2012)
Issue (Month): 1 ()
Pages: 127-140

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Handle: RePEc:ers:journl:v:xv:y:2012:i:1:p:127-140
Contact details of provider: Web page: http://www.ersj.eu/

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  1. Christina D. Romer & David H. Romer, 1999. "Monetary policy and the well-being of the poor," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 21-49.
  2. Beetsma, Roel & van der Ploeg, Frederick, 1992. "Does Inequality Cause Inflation? The Political Economy of Inflation, Taxation and Government Debt," CEPR Discussion Papers 741, C.E.P.R. Discussion Papers.
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  9. Giuseppe Bertola, 2010. "Inequality, integration, and policy: issues and evidence from EMU," Journal of Economic Inequality, Springer, vol. 8(3), pages 345-365, September.
  10. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152.
  11. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," Journal of Economic Inequality, Springer, vol. 8(3), pages 323-344, September.
  12. Rudiger Dornbusch & Sebastian Edwards, 1989. "Macroeconomic Populism in Latin America," NBER Working Papers 2986, National Bureau of Economic Research, Inc.
  13. Jim Dolmas & Gregory W. Huffman & Mark A. Wynne, 1997. "Inequality, inflation, and central bank independence," Working Papers 9705, Federal Reserve Bank of Dallas.
  14. E. Thalassinos, 2007. "Trade Regionalization, Exchange Rate Policies and EU-US Economic Cooperation," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 111-118.
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  17. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  18. FA Al-Marhubi, 2000. "Income inequality and inflation: the cross-country evidence," Contemporary Economic Policy, Western Economic Association International, vol. 18(4), pages 428-439, October.
  19. Christopher W. Crowe, 2006. "Inflation, Inequality, and Social Conflict," IMF Working Papers 06/158, International Monetary Fund.
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