Arbeitspapier
Income inequality, tax base and sovereign spreads
This paper investigates the association between greater income inequality, de-facto fiscal space, and sovereign spreads. Using data from 50 countries in 2007, in 2009 and in 2011, we find that higher income inequality is associated with a lower tax base, lower de-facto fiscal space, and higher sovereign spreads. The economic magnitude of these effects is rather large: an increase in the Gini coefficient of inequality by 1 (in a scale of 0-100), is associated in 2011 with a lower tax base of 2 percent of the GDP, and with a higher sovereign spread of 45 basis points.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 700
- Classification
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Wirtschaft
Taxation, Subsidies, and Revenue: General
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Open Economy Macroeconomics
- Subject
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income inequality
tax-base
fiscal space
sovereign spreads
Einkommensverteilung
Soziale Ungleichheit
Steuerbemessung
Öffentlicher Haushalt
Welt
- Event
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Geistige Schöpfung
- (who)
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Aizenman, Joshua
Jinjarak, Yothin
- Event
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Veröffentlichung
- (who)
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University of California, Economics Department
- (where)
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Santa Cruz, CA
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Aizenman, Joshua
- Jinjarak, Yothin
- University of California, Economics Department
Time of origin
- 2012