Further evidence on inflation targeting and income distribution
Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid
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Yn: Southern Economic Journal, 29.10.2024.
Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid
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TY - JOUR
T1 - Further evidence on inflation targeting and income distribution
AU - Vasilakis, Chrysovalantis
AU - Thornton, John
PY - 2024/10/29
Y1 - 2024/10/29
N2 - This paper examines the effect of inflation targeting (IT) on income distribution in a panel of 70 countries. Employing panel regressions and a variety of propensity score matching methods, we find strong evidence that that incomes became more unequal in IT-adopting countries relative to countries that did not adopt IT. Panel regressions suggest that Gini coefficients increased by 0.25 to 0.57% and the share of income of the top 1% and 10% of households increased by 0.7% in IT adopter countries. Using propensity score matching methods, IT has been associated with a relative rise in Gini coefficients of about 1-2 percentage points, and a relative increase in the share of national income going to the top 1% and 10% of households by about 11-13 percentage points and 13-17 percentage points, respectively. The results are robust to changes in country sample and alternative estimation methodologies
AB - This paper examines the effect of inflation targeting (IT) on income distribution in a panel of 70 countries. Employing panel regressions and a variety of propensity score matching methods, we find strong evidence that that incomes became more unequal in IT-adopting countries relative to countries that did not adopt IT. Panel regressions suggest that Gini coefficients increased by 0.25 to 0.57% and the share of income of the top 1% and 10% of households increased by 0.7% in IT adopter countries. Using propensity score matching methods, IT has been associated with a relative rise in Gini coefficients of about 1-2 percentage points, and a relative increase in the share of national income going to the top 1% and 10% of households by about 11-13 percentage points and 13-17 percentage points, respectively. The results are robust to changes in country sample and alternative estimation methodologies
U2 - 10.1002/soej.12743
DO - 10.1002/soej.12743
M3 - Article
JO - Southern Economic Journal
JF - Southern Economic Journal
SN - 0038-4038
ER -