Working Paper: CEPR ID: DP3470
Authors: Stefania Albanesi
Abstract: Cross-country evidence on inflation and inequality suggests that they are positively correlated. I explore the hypothesis that this correlation is the outcome of a distributional conflict underlying the determination of fiscal policy.
Keywords: bargaining; distributional conflict; fiscal policy; inequality; inflation
JEL Codes: D70; E00; E40; E50; E60; H20; H30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| income inequality (D31) | inflation (E31) |
| low-income households vulnerability to inflation (I32) | fiscal policy decisions (E62) |
| income inequality (D31) | low-income households vulnerability to inflation (I32) |