Inequality aversion in post-communist countries in the years of the crisis

David Aristei and Cristiano Perugini

Post-Communist Economies, 2016, vol. 28, issue 4, 436-448

Abstract: This article provides estimates for the parameters of inequality aversion for 10 post-communist economies of central and eastern Europe in the years of the crisis. To this aim, we employ the information on the level of tax progressivity available in the European Union Survey on Income and Living Conditions cross-sectional microdata, under the assumption that the principle of equal sacrifice drives the choices of governments on marginal tax rates. Results reveal a remarkable variety of preferences for redistribution across the countries during the time period considered (2008–2012), with some of them converging towards the generally higher inequality aversion levels of the western European Union, perhaps as a result of policy responses to the crisis.

Date: 2016
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DOI: 10.1080/14631377.2016.1224053

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