The Impact of Redistributive Fiscal Policies on Inequality

Ada Cristina Marinescu
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Ada Cristina Marinescu: Romanian Academy, National Institute for Economic Research, ‘Costin C. Kiriţescu’

Chapter 10 in Transformational Drivers of National Economies: A New Analytical Framework Addressing Transitional Growth Model, 2026, pp 189-196 from Springer

Abstract: Abstract The effectiveness of the welfare state depends mostly on the impact of redistributive fiscal policies on reducing income inequalities. Although social expenses have increased in eurozone countries, income inequalities and social disparities have accentuated. We intend to analyse in this paper the effect of social expenditure on the evolution of the Gini index, for the group of euro area countries. How should governments intervene to alleviate poverty and decrease income inequality? By investigating the relation between inequality and redistributive policies, we identify several patterns in the relation between fiscal redistribution and Gini coefficient. European governments should modify actual fiscal and social policies to reduce inequalities, which have increased following the pandemic crisis.

Keywords: Redistributive fiscal policies; Income inequality; Welfare state (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-18962-2_10

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DOI: 10.1007/978-3-032-18962-2_10

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