Using panel data of 17 OECD countries for 1980-2011, we find that the distributional consequences of fiscal consolidations depend significantly on the level of private indebtedness. Austerity leads to a strong and persistent increase in income inequality during periods of private debt overhang....

Democracy, income inequality and economic development are considered to be interlinked with one another in a complex way. The weak growth of political institutions and uncertainty about the continuity of democratic regimes in Pakistan has important consequences for the economic growth and level...