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Economic uncertainty and redistribution

Author

Listed:
  • Oscar Claveria

    (AQR-IREA, Universitat de Barcelona, Spain.)

  • Petar Soric

    (Faculty of Economics and Business, University of Zagreb, Croatia.)

Abstract

This study examines the relationship between economic uncertainty and the redistributive effect of taxes and government transfers in the UK and the US over the period 1980-2021. We find that the sign of the relationship between uncertainty and redistribution goes from being negative at the beginning of the 1980s to taking a positive and significant sign in recent years. In the US, economic uncertainty Granger-causes the redistributive effect of taxes and transfers in the short run, but the same does not hold for the UK.

Suggested Citation

  • Oscar Claveria & Petar Soric, 2024. "Economic uncertainty and redistribution," IREA Working Papers 202414, University of Barcelona, Research Institute of Applied Economics, revised Feb 2024.
    • Handle: RePEc:ira:wpaper:202415
    as

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    File URL: http://www.ub.edu/irea/working_papers/2024/202415.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom, 2014. "Fluctuations in Uncertainty," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 153-176, Spring.
    2. Greenwood-Nimmo, Matthew & Shin, Yongcheol, 2013. "Taxation and the asymmetric adjustment of selected retail energy prices in the UK," Economics Letters, Elsevier, vol. 121(3), pages 411-416.
    3. Oscar Claveria, 2024. "Redistribution and human development: evidence from Europe," Economics and Business Letters, Oviedo University Press, vol. 13(2), pages 68-81.
    4. Thomas Piketty & Emmanuel Saez, 2014. "Inequality in the long run," PSE-Ecole d'économie de Paris (Postprint) halshs-01053609, HAL.
    5. repec:hal:pseose:halshs-01053609 is not listed on IDEAS
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