The impact of income inequality on public debt

This paper examines the impact of domestic public debt on income inequality in Lebanon. The analysis is carried out using the Autoregressive Distributed Lag (ARDL) approach and Error Correction Model (ECM). The data used covers the period between 1990 and 2015. By applying the bounds test, we indicate that there is the existence of a long-run relationship between our variables. Therefore, in both the short and long run, our results show that the domestic share of public debt has a positive and significant effect on income inequality. Hence, a bigger share of domestic public debt leads to wider income inequality. We also suggest steps that may halt the negative impact of public debt on equality in Lebanon, such as reforming the tax system, restructuring the public debt, and searching for sources other than borrowing to cover the budget deficit.

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Secular stagnation in the modern world

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-11-125-141 ◽

2018 ◽

pp. 125-141 ◽

Cited By ~ 3

Author(s):

S. M. Drobyshevsky ◽

P. V. Trunin ◽

A. V. Bozhechkova

Keyword(s):

Public Debt ◽

Capital Accumulation ◽

Technological Development ◽

Japanese Economy ◽

Modern World ◽

Key Factors ◽

Destruction Process ◽

Secular Stagnation ◽

The Impact

The paper studies the factors of secular stagnation. Key factors of long-term slowdown in economic growth include the slowdown of technological development, aging population, human capital accumulation limits, high public debt, creative destruction process violation etc. The authors analyze key theoretical aspects of long-term stagnation and study the impact of these factors on Japanies economy. The authors conclude that most of the factors have significant influence on the Japanese economy for recent decades, but they cannot explain all dynamics. For Russia, on the contrary, we do not see any grounds for considering the decline in the economy since 2013 as an episode of secular stagnation.

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IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2020-11-6560 ◽

2017 ◽

Author(s):

Olena Pikaliuk ◽

◽

Dmitry Kovalenko ◽

Keyword(s):

Economic Development ◽

Public Debt ◽

Positive Impact ◽

The State ◽

Financial Security ◽

State Budget ◽

The Public ◽

Debt Security ◽

The Stability ◽

The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

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Delay in Marriage and Income Inequality in Japan: The Impact of the Increased Number of Unmarried Adults Living with Their Parents on the Household

SSRN Electronic Journal ◽

10.2139/ssrn.1413821 ◽

2009 ◽

Author(s):

Sawako Shirahase

Keyword(s):

Income Inequality ◽

The Impact

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Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

10.1093/oso/9780198807032.003.0007 ◽

2018 ◽

Author(s):

Gerhard Bosch ◽

Thorsten Kalina

Keyword(s):

Income Inequality ◽

Labour Market ◽

Economic Crisis ◽

Household Income ◽

Wage Bargaining ◽

Living Standards ◽

Social Model ◽

Real Wages ◽

The Impact ◽

Over Time

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

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How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

Margin The Journal of Applied Economic Research ◽

10.1177/0973801020920092 ◽

2020 ◽

Vol 14 (3) ◽

pp. 253-284

Author(s):

Ranjan Kumar Mohanty ◽

Sidheswar Panda

Keyword(s):

Economic Growth ◽

Interest Rate ◽

Public Debt ◽

Positive Impact ◽

Decomposition Analysis ◽

Structural Var ◽

Adverse Impact ◽

Mixed Effect ◽

Domestic Debt ◽

The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

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Income Distribution in Turkey during the Global Financial Crisis

Research in Applied Economics ◽

10.5296/rae.v9i3.11709 ◽

2017 ◽

Vol 9 (3) ◽

pp. 91

Author(s):

Sinem Sefil-Tansever

Keyword(s):

Financial Crisis ◽

Income Inequality ◽

Global Financial Crisis ◽

Income Source ◽

Labor Earnings ◽

Income Sources ◽

Gini Decomposition ◽

The Global Financial Crisis ◽

The Impact ◽

Earning Inequality

The aim of this study is to examine mechanism responsible for the behavior of the income and earning inequality in Turkey during the global financial crisis based on data from the 2006 to 2014 Income and Living Conditions Survey. Gini decomposition by income source is employed in order to provide an analysis of the contribution of the various income sources to the evolution of income inequality and to assess the impact of a marginal percentage change in the income from a particular source on income inequality. For examining the contributions of specific variables (education, position in occupation, economic sector) to the interpretation of labor earnings inequality in terms of their gross and marginal contribution, we use static decomposition of Theil T index.

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The effects of debt restructurings on income inequality in the developing world

European Journal of International Relations ◽

10.1177/13540661211001425 ◽

2021 ◽

pp. 135406612110014

Author(s):

Glen Biglaiser ◽

Ronald J. McGauvran

Keyword(s):

Developing Countries ◽

Panel Data ◽

Income Inequality ◽

Income Distribution ◽

Government Spending ◽

Tax Reform ◽

Social Spending ◽

The Poor ◽

The Rich ◽

The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

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Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

Sustainability ◽

10.3390/su13041780 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1780

Author(s):

Chima M. Menyelim ◽

Abiola A. Babajide ◽

Alexander E. Omankhanlen ◽

Benjamin I. Ehikioya

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Financial Services ◽

Sub Saharan Africa ◽

Kuznets Curve ◽

African Countries ◽

Financial Access ◽

Sub Saharan ◽

Sustainable Economic Growth ◽

The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

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Inequality, policy polarization and the income gap in turnout

Party Politics ◽

10.1177/13540688211011924 ◽

2021 ◽

pp. 135406882110119

Author(s):

Matthew Polacko

Keyword(s):

Income Inequality ◽

Low Income ◽

Party Systems ◽

Individual Level ◽

Income Gap ◽

Income Groups ◽

Logistic Regressions ◽

Negative Impacts ◽

The Impact ◽

The Relationship

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.

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