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Income Distribution and the 2008-2012 Economic Crisis: The Latin American Experience

Author

Listed:
  • Mario Iván Domínguez RIVAS
  • Benjamín García PÁEZ

    (Instituto Belisario Domínguez, México.)

Abstract

This paper analyses the financial and economic crises that had a differentiated impact in the Latin-American region, depending on the ability of some countries to keep up an aggregate demand -i.e., through redistribution devices like the degree of integration held within the foreign financial sector. Based on a sample of regional economies, and working over a period spanning from 2000 to 2013, we found that countries with a relatively better income distribution and domestic financial systems connected with credit programs supporting consumption and investment, had had a better economic performance than those countries with a strong linkage to the international financial system, given that the crisis was ignited at the banking system and accelerated by the same mechanism over-spreading negative shock effects on their capacity to offset them and, in doing so, try an economic recovery. Finally, the authors raise some hints to devise correct policy changes to deal in the still aftermath of the crises in Latin America from a post Keynesian perspective.

Suggested Citation

  • Mario Iván Domínguez RIVAS & Benjamín García PÁEZ, 2015. "Income Distribution and the 2008-2012 Economic Crisis: The Latin American Experience," Journal of Economics Library, KSP Journals, vol. 2(4), pages 329-333, December.
    • Handle: RePEc:ksp:journ5:v:2:y:2015:i:4:p:329-333
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Income distribution; Gini coefficient; Financial deepening; Market capitalization; Re-industrialization risks; Re-industrialization projects.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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