Dynamic effect of fiscal policy on wealth inequality: Evidence from middle-income countries

The study examined the dynamic effect of fiscal policy on wealth inequality in middle-income countries using panel data from 2010 to 2018 and the system Generalized Method of Moments (GMM) method. Two measures of fiscal policy were considered, namely government expenses and taxes on income, profits and capital gains. GDP per capita and adult population were used as control variables. The findings of this study show that while taxes on income, profits and capital gains have a significant negative effect on wealth inequality, government expenses have no effect whatsoever on wealth inequality.

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Year of publication:	2022
Authors:	Aye, Goodness C. ; Odhiambo, Nicholas M.
Published in:	Cogent Economics & Finance. - ISSN 2332-2039. - Vol. 10.2022, 1, p. 1-12
Publisher:	Abingdon : Taylor & Francis
Subject:	wealth inequality \| fiscal policy \| middle-income \| dynamics

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.1080/23322039.2022.2119705 [DOI] 1817810812 [GVK] RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2119705 [RePEc]
Classification:	C33 - Models with Panel Data ; D31 - Personal Income, Wealth and Their Distributions ; E21 - Consumption; Saving ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Source:	EconStor

Persistent link: https://www.econbiz.de/10015074327