Fiscal Adjustment and Income Inequality : Sub-national Evidence from Brazil /

We combine state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequa...

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Bibliographic Details
Main Author: Azevedo, Joao Pedro
Other Authors: David, Antonio, Pineda, Emilio, Rodrigues Bastos, Fabiano
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2014.
Series:IMF Working Papers; Working Paper ; No. 2014/085
Online Access:Full text available on IMF
Description
Summary:We combine state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequality measures. This finding contrasts with the conclusions of several papers in the burgeoning literature on the effects of fiscal consolidation on inequality using national data for OECD economies. In addition, we find that a tighter stance is typically positively associated with a measure of 'shared prosperity'. Hence, our results caution against extrapolating policy implications of the literature focusing on advanced economies to other settings.
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Physical Description:1 online resource (31 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students