TY - JOUR
T1 - Interrelation among economic growth, income inequality, and fiscal performance
T2 - Evidence from anglo-saxon countries
AU - Davtyan, Karen
PY - 2016/2
Y1 - 2016/2
N2 - The interrelation among economic growth, income inequality, and fiscal performance is very complex. The objective of this paper is to analyze the dynamic interrelations among these variables using structural VAR models and to examine transmission channels among them. The empirical analysis is implemented for the UK, the USA, and Canada, using the longest possible consistently measured comparable data on income inequality. The obtained results show that inequality has a negative effect on growth in the case of the UK while the effect is positive for the USA and Canada. An increase in inequality worsens fiscal performance for all the considered countries.
AB - The interrelation among economic growth, income inequality, and fiscal performance is very complex. The objective of this paper is to analyze the dynamic interrelations among these variables using structural VAR models and to examine transmission channels among them. The empirical analysis is implemented for the UK, the USA, and Canada, using the longest possible consistently measured comparable data on income inequality. The obtained results show that inequality has a negative effect on growth in the case of the UK while the effect is positive for the USA and Canada. An increase in inequality worsens fiscal performance for all the considered countries.
KW - Economic growth
KW - Fiscal performance
KW - Income inequality
KW - VAR
UR - http://www.scopus.com/inward/record.url?scp=85007303010&partnerID=8YFLogxK
U2 - 10.7866/HPE-RPE.16.2.2
DO - 10.7866/HPE-RPE.16.2.2
M3 - Article
AN - SCOPUS:85007303010
SN - 0210-1173
VL - 217
SP - 37
EP - 66
JO - Hacienda Publica Espanola
JF - Hacienda Publica Espanola
IS - 2
ER -
