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“Economic uncertainty and redistribution”

Author

Listed:
  • Oscar Claveria

    (AQR-IREA, University of Barcelona)

  • Petar Soric

    (University of Zagreb)

Abstract

This study examines the relationship between economic uncertainty and the redistributive effect of taxes and government transfers in the UK and the US over the period 1980-2021. We find that the sign of the relationship between uncertainty and redistribution goes from being negative at the beginning of the 1980s to taking a positive and significant sign in recent years. In the US, economic uncertainty Granger-causes the redistributive effect of taxes and transfers in the short run, but the same does not hold for the UK.

Suggested Citation

  • Oscar Claveria & Petar Soric, 2024. "“Economic uncertainty and redistribution”," AQR Working Papers 202405, University of Barcelona, Regional Quantitative Analysis Group, revised Nov 2024.
    • Handle: RePEc:aqr:wpaper:202405
    as

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    File URL: https://www.ub.edu/irea/working_papers/2024/202415.pdf
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    References listed on IDEAS

    as
    1. N. Bloom, 2016. "Fluctuations in uncertainty," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    2. Oscar Claveria, 2024. "Redistribution and human development: evidence from Europe," Economics and Business Letters, Oviedo University Press, vol. 13(2), pages 68-81.
    3. Greenwood-Nimmo, Matthew & Shin, Yongcheol, 2013. "Taxation and the asymmetric adjustment of selected retail energy prices in the UK," Economics Letters, Elsevier, vol. 121(3), pages 411-416.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic uncertainty; redistributive policy; income inequality; taxes; government transfers. JEL classification: C50; D30; E62; H50;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D30 - Microeconomics - - Distribution - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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