Can consumption taxes reduce inequality in developing countries? This paper combines household expenditure data from 31 … allow for informal consumption and calibrates it to the data to study the effects of different tax policies on inequality …. Contrary to consensus, the findings show that consumption taxes are redistributive, lowering inequality by as much as personal …

Fiscal policy is central to not only macroeconomic stability and growth, but also to poverty and inequality reduction … Turkey's achievements against peer countries. The results show that fiscal policy significantly reduces income inequality in … countervail the inequality-increasing impact of indirect taxes. At the bottom of the income distribution, targeted transfers are …

The quest for status is a powerful motivator, but does it affect inequality? This paper presents a novel lab experiment … that was designed and conducted to identify the relationship between inequality, status signaling, debt, and conspicuous … finance exacerbates inequality. The results point to a vicious cycle of inequality and costly borrowing …

This paper investigates the link between inequality and demand for redistribution by looking at how individuals form … their perceptions of inequality. Most of the literature analyzing demand for redistribution has focused on objective … inequality, rather than subjective perceptions of inequality. However, a model that links demand for redistribution to subjective …

transfers. The findings show that the system is progressive and contributes to reductions in poverty and inequality. The Gini …

This paper characterizes the trade-off between the income gains and the inequality costs of trade using survey data for … gains and the inequality costs of trade liberalization are quantified and the trade-offs between them are assessed using an … inequality costs (gains), which arise because trade tends to exacerbate income inequality: 45 countries face a trade-off, while …