David, Antonio C.Azevedo, Joao PedroRodrigues Bastos, FabianoPineda, Emilio2014-08-152014-08-152014-06https://hdl.handle.net/10986/19379The paper combines state-level fiscal data with household survey data to assess the links between sub-national fiscal policy and income inequality in Brazil over the period 1995-2011. The results indicate that a tighter fiscal stance at the sub-national level is not associated with a deterioration in inequality measures. This finding contrasts with the conclusions of several papers in the burgeoning literature on the effects of fiscal consolidation on inequality using national data for OECD economies. In addition, the authors find that a tighter stance is typically positively associated with a measure of "shared prosperity". Hence, the results caution against extrapolating policy implications of the literature focusing on advanced economies to other settings.en-USCC BY 3.0 IGOACCOUNTINGADJUSTMENT PERIODADJUSTMENT PROCESSADVERSE EFFECTAMORTIZATIONBANK POLICYBENEFICIARYBONDBUDGET DEFICITBUSINESS CYCLEBUSINESS CYCLESCAPITAL ACCUMULATIONCASH TRANSFERSCENTRAL BANKCENTRAL GOVERNMENTCHECKSCOEFFICIENTSCOMMODITY PRICECOMMODITY PRICESCONVERGENCE EFFECTSCORPORATE INCOME TAXESCROSS-COUNTRY ANALYSISCROSS-COUNTRY DATACROSS-COUNTRY STUDIESCURRENT EXPENDITURESDEBT BURDENSDEBT LEVELDEBT LEVELSDEBT RESTRUCTURINGDEBT RESTRUCTURING AGREEMENTDEBT STOCKDECLINING INEQUALITYDEFLATORSDEMOGRAPHIC FACTORSDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED ECONOMIESDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISBURSEMENTSDISPOSABLE INCOMEDISTRIBUTIONAL EFFECTSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INEQUALITYECONOMIC RESEARCHECONOMIC THEORYEFFICIENCY GAINSEFFICIENT USEEFFICIENT USE OF PUBLIC RESOURCESEMERGING ECONOMIESEMERGING MARKETSEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEQUITY CONCERNSEXPENDITUREEXPENDITURE CATEGORYEXPENDITURE CUTSEXPENDITURE POLICIESEXPENDITURESEXPENDITURES ON EDUCATIONEXPLAINING INEQUALITYFEDERAL COUNTRYFEDERAL DISTRICTFEDERAL REGULATIONSFEDERAL REVENUEFINANCIAL CRISISFINANCIAL OPENNESSFISCAL ADJUSTMENTFISCAL BALANCEFISCAL BALANCESFISCAL DECENTRALIZATIONFISCAL DISCIPLINEFISCAL FEDERALISMFISCAL INSTITUTIONSFISCAL PERFORMANCEFISCAL POLICYFISCAL SPACEFISCAL VARIABLESGDPGDP DEFLATORGDP PER CAPITAGINI COEFFICIENTGOVERNMENT SPENDINGGROWTH THEORIESHETEROSKEDASTICITYHIGH INFLATIONHOUSEHOLD INCOMEHOUSEHOLD SIZEHUMAN CAPITALINCOME DISTRIBUTIONINCOME INEQUALITYINCOME TAXESINCREASED INEQUALITYINCREASING INEQUALITYINDEBTEDNESSINEQUALITY DYNAMICSINEQUALITY INDICATORSINEQUALITY MEASUREINEQUALITY MEASURESINFLATIONINFLATION RATEINFRASTRUCTURE INVESTMENTINSTRUMENTINTEREST PAYMENTSINTEREST RATEINTEREST RATE PAYMENTSINTERNATIONAL BANKINTERNATIONAL FINANCIAL MARKETSINVESTMENT CLIMATEINVESTMENT SPENDINGJOB CREATIONLABOR MARKETSLAGGED DEPENDENTLOG INCOMEMACROECONOMIC CONDITIONSMACROECONOMIC DETERMINANTSMACROECONOMIC FACTORSMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC RISKMACROECONOMIC STABILIZATIONMACROECONOMIC VARIABLESMARGINAL PRODUCTMINISTRY OF FINANCEMONETARY ECONOMICSMONETARY FUNDMORAL HAZARDMUNICIPAL EXPENDITURESMUNICIPALITIESNATIONAL TREASURYNEGATIVE COEFFICIENTNEGATIVE IMPACTNULL HYPOTHESISOUTPUT GAPPENSIONPENSIONSPER CAPITA GROWTHPER CAPITA GROWTH RATEPER CAPITA INCOMEPERSONAL INCOMEPERSONAL INCOME TAXESPOLARIZED SOCIETIESPOLICY CHANGESPOLICY DISCUSSIONSPOLICY IMPLICATIONSPOLICY MAKINGPOLICY RESEARCHPOLICY VARIABLESPOLITICAL ECONOMYPOTENTIAL OUTPUTPOVERTY DYNAMICSPOVERTY REDUCTIONPRICE FLUCTUATIONSPROPERTY TAXESPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC SPENDINGRANDOM EFFECTSREAL GDPREDISTRIBUTIONREDISTRIBUTION POLICIESREDISTRIBUTIVE POLICYREGRESSION RESULTSREGRESSIVE TAXESRELATIVE IMPORTANCERELATIVE SUPPLYRENEGOTIATIONRETURNRETURNSREVENUE COLLECTIONREVENUE ELASTICITYREVENUE GROWTHREVENUE INCREASESREVENUE MOBILIZATIONRISK FACTORSAFETY NETSSECTOR EMPLOYMENTSENSITIVITY ANALYSISSERIAL CORRELATIONSIGNIFICANT DIFFERENCESSIGNIFICANT EFFECTSKILLED LABORSKILLED WORKERSSOCIAL SAFETYSOCIAL SAFETY NETSSTATE GOVERNMENTSSTATIC ANALYSISSUB-NATIONALSUB-NATIONAL DEBTSUB-NATIONAL ENTITIESSUBNATIONALTAXTAX BUOYANCYTAX BURDENTAX REVENUETAX REVENUESTAX SYSTEMTAXATIONTOTAL EXPENDITURETOTAL REVENUEUNEMPLOYMENTUNEMPLOYMENT RATEWARRANTSZERO ELASTICITY10.1596/1813-9450-6945