Income inequality, fiscal stimuli and political (in)stability

Luca Agnello; Vitor Castro; João Tovar Jalles; Ricardo M. Sousa

doi:10.1007/s10797-016-9428-x

Income inequality, fiscal stimuli and political (in)stability

Luca Agnello, Vitor Castro, João Tovar Jalles, Ricardo M. Sousa

NOVA School of Business and Economics (NOVA SBE)

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises. However, such adverse distributional effect is reduced when expansionary or increasingly expansionary fiscal stimuli episodes or successful fiscal stimuli programs are put in place.

Original language	English
Pages (from-to)	484-511
Number of pages	28
Journal	International Tax and Public Finance
Volume	24
Issue number	3
DOIs	https://doi.org/10.1007/s10797-016-9428-x
Publication status	Published - 2017

Keywords

Expansionary policies
Fiscal stimuli
Income distribution
Institutional quality
Political environment
Tobit regression

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s10797-016-9428-x

Cite this

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title = "Income inequality, fiscal stimuli and political (in)stability",

abstract = "Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises. However, such adverse distributional effect is reduced when expansionary or increasingly expansionary fiscal stimuli episodes or successful fiscal stimuli programs are put in place.",

keywords = "Expansionary policies, Fiscal stimuli, Income distribution, Institutional quality, Political environment, Tobit regression",

author = "Luca Agnello and Vitor Castro and Jalles, {Jo{\~a}o Tovar} and Sousa, {Ricardo M.}",

note = "Funding: Operational Programme for Competitiveness Factors-COMPETE, FCOMP-01-0124-FEDER-037268 (PEst-C/EGE/UI3182/2013), FCT-Portuguese Foundation for Science and Technology, SFRH/BSAB/113588/2015, QREN and FEDER",

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T1 - Income inequality, fiscal stimuli and political (in)stability

AU - Agnello, Luca

AU - Castro, Vitor

AU - Jalles, João Tovar

AU - Sousa, Ricardo M.

N1 - Funding: Operational Programme for Competitiveness Factors-COMPETE, FCOMP-01-0124-FEDER-037268 (PEst-C/EGE/UI3182/2013), FCT-Portuguese Foundation for Science and Technology, SFRH/BSAB/113588/2015, QREN and FEDER

PY - 2017

Y1 - 2017

N2 - Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises. However, such adverse distributional effect is reduced when expansionary or increasingly expansionary fiscal stimuli episodes or successful fiscal stimuli programs are put in place.

AB - Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises. However, such adverse distributional effect is reduced when expansionary or increasingly expansionary fiscal stimuli episodes or successful fiscal stimuli programs are put in place.

KW - Expansionary policies

KW - Fiscal stimuli

KW - Income distribution

KW - Institutional quality

KW - Political environment

KW - Tobit regression

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DO - 10.1007/s10797-016-9428-x

M3 - Article

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SP - 484

EP - 511

JO - International Tax and Public Finance

JF - International Tax and Public Finance

SN - 0927-5940

IS - 3

ER -

Income inequality, fiscal stimuli and political (in)stability

Abstract

Keywords

UN SDGs

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