Financial Globalization, Fiscal Policies and the Distribution of Income
Davide Furceri (),
Prakash Loungani (),
Jonathan Ostry () and
Pietro Pizzuto ()
Comparative Economic Studies, 2020, vol. 62, issue 2, No 2, 185-199
Abstract This paper provides evidence that financial globalization—liberalization of the capital account—makes income distribution more uneven by raising the share of income that goes to the richest income deciles. We also offer evidence that changes in domestic fiscal policies in the aftermath of financial globalization are one channel through which these distributional effects could occur. Specifically, we show that episodes of capital account liberalization are followed by greater fiscal consolidation and reduced fiscal redistribution, both of which lead to increased inequality.
Keywords: Financial globalization; Inequality; Fiscal policy; Top income shares (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41294-020-00113-4 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:62:y:2020:i:2:d:10.1057_s41294-020-00113-4
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2
Access Statistics for this article
Comparative Economic Studies is currently edited by Nauro Campos
More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().