Inequality, prosperity, and fiscal policy: A case for caution in interpreting income distributions

Phillip W. Magness

The International Trade Journal, 2019, vol. 33, issue 1, 16-30

Abstract: This article examines recent developments in the long-term measurement of top income shares for several countries. While several works have used these data to suggest a causal link between inequality and fiscal policy, I argue for greater caution when asserting this prescriptive link. Issues of how we interpret measured inequality as well as the reliability of underlying source data suggest unresolved uncertainties about the long-posited connection between taxation and inequality.

Date: 2019
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DOI: 10.1080/08853908.2018.1517063

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