Arbeitspapier
Income inequality, tax base and sovereign spreads
This note investigates the impact of greater income inequality on the tax base, on the defacto fiscal space, and the sovereign spreads. Using data from 50 countries in 2005 and in 2010, 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: a one standard deviation increase of inequality is associated with a lower tax base of 28 % GDP, and with a higher sovereign spread of 240 basis points in 2005.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 691
- Classification
-
Wirtschaft
Taxation, Subsidies, and Revenue: General
Fiscal Policies and Behavior of Economic Agents: General
National Debt; Debt Management; Sovereign Debt
- Subject
-
income inequality
tax-base
fiscal space
sovereign spreads
Einkommensverteilung
Soziale Ungleichheit
Steuerbemessung
Öffentlicher Haushalt
Welt
- Event
-
Geistige Schöpfung
- (who)
-
Aizenman, Joshua
Jinjarak, Yothin
- Event
-
Veröffentlichung
- (who)
-
University of California, Economics Department
- (where)
-
Santa Cruz, CA
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Aizenman, Joshua
- Jinjarak, Yothin
- University of California, Economics Department
Time of origin
- 2011
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