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Interrelation among Economic Growth, Income Inequality, and Fiscal Performance: Evidence from Anglo-Saxon Countries
Davtyan, Karen
Universitat de Barcelona
The interrelation among economic growth, income inequality, and fiscal performance is very complex. The paper provides the analysis of the interrelations among these variables jointly by the structural VAR methodology, examining also transmission channels among them. This approach allows exploring dynamic interactions among them and feedback effects on each other. The empirical analysis is implemented for the Anglo-Saxon countries, the UK, the USA, and Canada. We find that income inequality has negative effect on economic growth in the case of the UK. The effect is positive in the cases of the USA and Canada. The increase in income inequality worsens fiscal performance for all the countries
Creixement econòmic
Igualtat
Economia de mercat
Política fiscal
Economic growth
Equality
Market economy
Fiscal policy
cc-by-nc-nd, (c) Davtyan, 2014
http://creativecommons.org/licenses/by-nc-nd/3.0/
Documento de trabajo
Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
         

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