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Inequality, integration, and policy: issues and evidence from EMU

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  • Giuseppe Bertola

Abstract

Economic integration fosters production efficiency by enhancing market competition, and makes it difficult for National governments to conduct independent fiscal policies and to enforce income redistribution schemes. Controlling for country-level income variation, available data suggest that Europe?s Economic and Monetary Union (EMU) was associated with a small but significant increase in disposable income inequality, reflecting less generous social policies.
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  • Giuseppe Bertola, 2010. "Inequality, integration, and policy: issues and evidence from EMU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 345-365, September.
    • Handle: RePEc:kap:jecinq:v:8:y:2010:i:3:p:345-365
    DOI: 10.1007/s10888-009-9126-3
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    More about this item

    Keywords

    Policy competition; Redistribution;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General

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