Fiscal consolidations and inequality: A survey of the literature

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This paper surveys the literature on the effects of fiscal consolidations on inequality and highlights the contributions made by researchers. Several conclusions can be drawn. First, fiscal consolidations can harm income distribution (income inequality). Besides, this impact is greater when fiscal consolidations are driven by reductions in expenditures. Concerning the impact of tax-based fiscal consolidations, the literature is not consensual. Some studies find that tax-based fiscal consolidations reduce income inequality, while others find the opposite. Second, studies highlight that the composition and size of fiscal consolidations might affect the redistribution of income. Moreover, they point out that the initial economic conditions might impact income inequality through fiscal consolidation measures.

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  • 経済論究

    経済論究 169 43-64, 2021-03-23

    Kyushu Daigaku Daigakuin Keizaigakukai

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