Growing (Un)equal : Fiscal Policy and Income Inequality in China and BRIC+ /

This paper investigates the empirical characteristics of income inequality in China and a panel of BRIC+ countries over the period 1980-2013, with a focus on the redistributive contribution of fiscal policy. Using instrumental variable techniques to deal with potential endogeneity, we find evidence...

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Bibliographische Detailangaben
1. Verfasser: Cevik, Serhan
Weitere Verfasser: Correa-Caro, Carolina
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2015.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2015/068
Online Zugang:Full text available on IMF
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245 1 0 |a Growing (Un)equal :   |b Fiscal Policy and Income Inequality in China and BRIC+ /  |c Serhan Cevik, Carolina Correa-Caro. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2015. 
300 |a 1 online resource (26 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper investigates the empirical characteristics of income inequality in China and a panel of BRIC+ countries over the period 1980-2013, with a focus on the redistributive contribution of fiscal policy. Using instrumental variable techniques to deal with potential endogeneity, we find evidence supporting the hypothesis of the existence of a Kuznets curve-an inverted Ushaped relationship between income inequality and economic development-in China and the panel of BRIC+ countries. In the case of China, the empirical results indicate that government spending and taxation have opposing effects on income inequality. While government spending appears to have a worsening impact, taxation improves income distribution. Even though the redistributive effect of fiscal policy in China appears to be stronger than what we identify in the BRIC+ panel, it is not large enough to compensate for the adverse impact of other influential factors. 
538 |a Mode of access: Internet 
700 1 |a Correa-Caro, Carolina. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2015/068 
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