Redistribution, Inequality, and Growth: GVAR Approach

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Main Author: Luccas Attílio
Format: Artículo científico
Language:en
Published: Universidad Nacional Autónoma de México 2022
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author Luccas Attílio
author_facet Luccas Attílio
contents Redistribution, Inequality, and Growth: GVAR Approach Luccas Attílio Economía y Finanzas gdp growth inequality Redistribution financial development This article investigates the effect of GDP redistribution in 33 economies in the period 1980Q1-2019Q4, using the GVAR model. Redistribution shocks increase GDP to a greater extent in groups of countries with greater inequality, losing their effectiveness in more egalitarian groups. Credit and investment stood out as potential transmission channels for these shocks. By incorporating financial development, the shocks of inequality no longer harm production in most cases. Similarly, the interaction between financial development and redistribution enhanced the effect of redistribution on the production of more egalitarian groups. This evidence suggests that financial development can bring benefits to redistribution and reduce the harm of inequality. Finally, we found significant heterogeneity in the responses of the GDP of each economy to redistributive shocks, suggesting that domestic specificities are relevant for the understanding of redistribution policies. 2022 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60175439003 https://www.redalyc.org/journal/601/60175439003/ https://www.redalyc.org/journal/601/60175439003/html/ https://www.redalyc.org/journal/601/60175439003/60175439003.epub https://www.redalyc.org/journal/601/60175439003/movil 10.22201/fe.01851667p.2022.321.81800 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.321 Vol.LXXXI
format Artículo científico
id redalyc_60175439003
institution Redalyc
language en
publishDate 2022
publisher Universidad Nacional Autónoma de México
spellingShingle Redistribution, Inequality, and Growth: GVAR Approach
Luccas Attílio
Economía y Finanzas
gdp
growth
inequality
Redistribution
financial development
Redistribution, Inequality, and Growth: GVAR Approach Luccas Attílio Economía y Finanzas gdp growth inequality Redistribution financial development This article investigates the effect of GDP redistribution in 33 economies in the period 1980Q1-2019Q4, using the GVAR model. Redistribution shocks increase GDP to a greater extent in groups of countries with greater inequality, losing their effectiveness in more egalitarian groups. Credit and investment stood out as potential transmission channels for these shocks. By incorporating financial development, the shocks of inequality no longer harm production in most cases. Similarly, the interaction between financial development and redistribution enhanced the effect of redistribution on the production of more egalitarian groups. This evidence suggests that financial development can bring benefits to redistribution and reduce the harm of inequality. Finally, we found significant heterogeneity in the responses of the GDP of each economy to redistributive shocks, suggesting that domestic specificities are relevant for the understanding of redistribution policies. 2022 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60175439003 https://www.redalyc.org/journal/601/60175439003/ https://www.redalyc.org/journal/601/60175439003/html/ https://www.redalyc.org/journal/601/60175439003/60175439003.epub https://www.redalyc.org/journal/601/60175439003/movil 10.22201/fe.01851667p.2022.321.81800 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.321 Vol.LXXXI
title Redistribution, Inequality, and Growth: GVAR Approach
topic Economía y Finanzas
gdp
growth
inequality
Redistribution
financial development
url https://www.redalyc.org/articulo.oa?id=60175439003
https://www.redalyc.org/journal/601/60175439003/
https://www.redalyc.org/journal/601/60175439003/html/
https://www.redalyc.org/journal/601/60175439003/60175439003.epub
https://www.redalyc.org/journal/601/60175439003/movil