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Analysis of Intergenerational Inequality: the Role of Public Expenditure and Taxation

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  • Emanuele, Canegrati

Abstract

In this paper I analyse the impact of public expenditure and income taxation on intergenerational inequality for seventeen countries. Age group Gini index is calculated by using data from the Luxemburg Income Study (LIS). Results are very robust in demonstrating that only income taxation is able to influence the level of intergenerational inequality, since it directly a¤ects the wealth of households. Otherwise, public expenditure seems to have no impact on individuals' welfare, even if we consider public expenditure components which should be tailored for specific cohorts. Different hypotheses on standard errors are considered, in order to detect the presence of one-way or two-way fixed effects.

Suggested Citation

  • Emanuele, Canegrati, 2008. "Analysis of Intergenerational Inequality: the Role of Public Expenditure and Taxation," MPRA Paper 10926, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10926
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    File URL: https://mpra.ub.uni-muenchen.de/10926/1/MPRA_paper_10926.pdf
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    References listed on IDEAS

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    8. Francesco Giavazzi & Tullio Jappelli & Marco Pagano, "undated". "Searching for Non-Keynesian Effects of Fiscal Policy," Working Papers 136, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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    10. António Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Income distribution determinants and public spending efficiency," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 367-389, September.
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    Cited by:

    1. Agupusi, Patricia, 2019. "The effect of parents’ education appreciation on intergenerational inequality," International Journal of Educational Development, Elsevier, vol. 66(C), pages 214-222.

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    More about this item

    Keywords

    Age group inequality; Public Expenditure; Income Taxa- tion;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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