Household characteristics and income inequality during inflationary periods: Recent evidence from Suriname (original) (raw)
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The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
International Journal of Business and Technopreneurship, 2019
Income inequality has become a major public issue all over the world. Each year the gap between the rich and poor is rising, and the circumstance has turned to be miserable in many countries. This paper investigates the impact of inflation on income inequality using data from the period of 1990 to 2015. The study uses econometric techniques on the time series data. All data are found to be stationary at first difference by using Augmented Dickey-Fuller (ADF) test. The results of Johannsen co-integration test confirm that there is a long-run positive significant relationship among the examined variables. The result shows that if inflation increases by 1%, income inequality increases by 4.99%. The result of the vector error correction model (VECM) shows that inequality requires approximately 0.35% of error correction per year and inflation requires 22.74% of error correction per year to reach equilibrium. The result of the impulse response function indicates that one standard deviation shock from inequality and inflation causes inequality to rise over time. When one standard deviation shock is given to inequality causes inflation to decline after 1.5 years then neutralized after 3.5 years where shock from inflation, inflation becomes negative after two years and neutralized after six years.
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Inflation and Income Inequality
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The aim of this paper is to examine the relationship between inflation and income inequality. The article is mainly theoretical, but considerations presented are illustrated by relevant empirical data. Based on our analysis, we claim that inflation, which accelerated after the collapse of the Bretton Woods system in 1971, could have contributed to the rise in income inequality in the USA since the 1970s. Our article transcends the simple notion of an inflation tax and focuses on other redistributive mechanisms of inflation (Cantillon effect) as one of the main causes of income inequality.
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Inflation, Growth, and Distribution Nexus in Post-Transition and Emerging Economies of South Asia
Economic Alternatives, 2020
This study investigates the impact of inflation on poverty and income distribution in five major economies in South Asia in the period 1986-2014. Inflation reduces the poverty rate and the poverty gap as the agricultural poor largely benefit from higher agricultural prices whereas the poorest quintile of the population who are landless farmers remain in a disadvantageous position. This raises the overall level of inequality in the economy despite poverty reduction. Trade openness is still not the engine of growth in South Asia - rather it has widened the poverty gap and aggravated inequality because the poor are not well integrated to the global market as compared to the well-off groups. As a result, there has been growing inequality across the region.
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