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 |
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Pages (from-to) | 484-511 |
Number of pages | 28 |
Journal | International Tax and Public Finance |
Volume | 24 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2017 |
Keywords
- Expansionary policies
- Fiscal stimuli
- Income distribution
- Institutional quality
- Political environment
- Tobit regression