Income inequality and inflation: The cross-country evidence

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Different strands of the political economy approach to macroeconomic policy imply a link between income inequality and inflation. This article tests this proposition using a newly assembled data set on income distribution. The results show that income inequality is associated with higher inflation. This association, although not economically large, holds for democracies as well as nondemocracies. Sensitivity analysis suggests that the results are not due to measurement error, reverse causation, or omitted variables.

Original languageEnglish
Pages (from-to)428-439
Number of pages12
JournalContemporary Economic Policy
Volume18
Issue number4
Publication statusPublished - 2000

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inflation
income
economic policy
income distribution
evidence
political economy
democracy
Income inequality
Inflation
Sensitivity analysis
Macroeconomic policy
High inflation
Income distribution
Measurement error
Causation
Omitted variables
Political economy
Democracy

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Public Administration

Cite this

Income inequality and inflation : The cross-country evidence. / Al-Marhubi, Fahim A.

In: Contemporary Economic Policy, Vol. 18, No. 4, 2000, p. 428-439.

Research output: Contribution to journalArticle

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