[ skip to content ]

Income inequality, tax base and sovereign spreads

Aizenman, Joshua and Jinjarak, Yothin (2012) 'Income inequality, tax base and sovereign spreads.' FinanzArchiv, 68 (4). pp. 431-444.

[img]
Preview
PDF
Download (406Kb) | Preview

Abstract

This note investigates the association of greater income inequality and the tax base, de-facto fiscal space, and sovereign spreads. Using data for the 50 countries in 2007, in 2009 and in 2011, we find that higher income inequality is associated with lower tax base, lower de-facto fiscal space, and higher sovereign spreads. The economic magnitude of these effects is rather large: a 0.01 increase in the Gini coefficient of inequality, is associated in 2011 with a lower tax base of 2 % GDP, and with higher sovereign spread of 45 basis points.

Item Type: Journal Articles
SOAS Departments & Centres: Faculty of Law and Social Sciences > School of Finance and Management
Depositing User: Yothin Jinjarak
Date Deposited: 03 Oct 2012 11:14
URI: http://eprints.soas.ac.uk/id/eprint/14272

Statistics

Download activity - last 12 months
Downloads since deposit
160Downloads
126Hits
Accesses by country - last 12 months
Accesses by referrer - last 12 months
Additional statistics for this record are available via IRStats2

Repository staff only

Edit Item Edit Item