The Inflation-Inequality Connection in the European Union: U-Turn to Equity?
Document Type
Article
Publication Date
6-1-2024
Journal / Book Title
Journal of Economic Integration
Abstract
In this study, we delve into the complex relationship between inflation and inequality in the European Union from 1990 to 2019. Specifically, we explore the non-linear nature of this relationship, uncover turning points, and reveal the distinctive U-shape of the relationship be-tween the two indicators. Our research also uncovers some striking findings: first, we discover that sales taxes disproportionately harm households and drive up inequality, and second, we find that income tax policies are very effective at reducing inequality in Western European countries, while they are substantially less effective in Eastern European countries with lower income tax rates.
DOI
10.11130/jei.2024015
MSU Digital Commons Citation
Akarsu, Mahmut Zeki and Gharehgozli, Orkideh, "The Inflation-Inequality Connection in the European Union: U-Turn to Equity?" (2024). Department of Economics Faculty Scholarship and Creative Works. 107.
https://digitalcommons.montclair.edu/economics-facpubs/107
Published Citation
Akarsu, M. Z., & Gharehgozli, O. (2024). The Inflation-Inequality Connection in the European Union: U-Turn to Equity?. Journal of Economic Integration, 39(2), 296-318.