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Inequality, democracy and taxation: lessons from the post-communist transition

Author

Listed:
  • Christopher Gerry

    () (UCL School of Slavonic and East European Studies)

  • Tomasz Marek Mickiewicz

    () (UCL School of Slavonic and East European Studies)

Abstract

Using data for post-communist economies (1989-2002), we examine the determinants of income inequality. We find a strong positive association between equality and tax collection but note that this relationship is significantly stronger under authoritarian regimes than under democracies. We also discover that early macroeconomic stabilisation resulted in lower inequality; we confirm that education fosters equality and find that larger countries are prone to higher levels of inequality.

Suggested Citation

  • Christopher Gerry & Tomasz Marek Mickiewicz, 2007. "Inequality, democracy and taxation: lessons from the post-communist transition," UCL SSEES Economics and Business working paper series 74, UCL School of Slavonic and East European Studies (SSEES).
  • Handle: RePEc:see:wpaper:74
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    File URL: http://discovery.ucl.ac.uk/1381924/1/1381924.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jens Holscher & Cristiano Perugini & Fabrizio Pompei, 2011. "Wage inequality, labour market flexibility and duality in Eastern and Western Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 271-310.
    2. repec:gam:jecomi:v:5:y:2017:i:2:p:18-:d:100556 is not listed on IDEAS
    3. Alexei Izyumov & Trista Claxon, 2009. "Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(3), pages 733-758.
    4. Tullio Buccellato & Tomasz Marek Mickiewicz, 2007. "Oil and gas: a blessing for few hydrocarbons and within-region inequality in Russia," UCL SSEES Economics and Business working paper series 80, UCL School of Slavonic and East European Studies (SSEES), revised Feb 2008.

    More about this item

    Keywords

    income inequality; democracy; authoritarian regimes; taxes; transition;

    JEL classification:

    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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