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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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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. 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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  8. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  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.
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  11. Kaminsky, Graciela L. & Pereira, Alfredo, 1996. "The debt crisis: lessons of the 1980s for the 1990s," Journal of Development Economics, Elsevier, vol. 50(1), pages 1-24, June.
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  14. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
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  19. 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.
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