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Absolute Poverty and Sound Public Finance in the Eurozone
- Source :
- The Journal of Economic Inequality. 20:327-344
- Publication Year :
- 2021
- Publisher :
- Springer Science and Business Media LLC, 2021.
-
Abstract
- The respect of fiscal parameters is supposed to be – according to the official position of the European institutions – the best recipe for granting stability and growth. This optimistic view appears to be in contrast with the recent increase in poverty. The aim of this paper is to individuate the existence of a relation between governments’ decisions about fiscal policy and absolute poverty in 19 Eurozone countries from 2005 to 2017. The attempt is to answer the question as to whether the effect on growth generated by fiscal policy measures can account for the objective of poverty alleviation. The results support the conclusion that absolute poverty increases in the presence of a restrictive fiscal policy, while it decreases in the opposite case. During declining macroeconomic conditions, national governments belonging to the Eurozone appear to be unable to reconcile the objective of sound public finance with that of poverty alleviation.
- Subjects :
- Organizational Behavior and Human Resource Management
Extreme poverty
Sociology and Political Science
Poverty
growth
Fiscal policy
Growth
Eurozone
Dynamic panel data
Poverty, fiscal policy, growth, Eurozone, dynamic panel data
Development economics
Economics
Position (finance)
dynamic panel data
General Economics, Econometrics and Finance
fiscal policy
Public finance
Subjects
Details
- ISSN :
- 15738701 and 15691721
- Volume :
- 20
- Database :
- OpenAIRE
- Journal :
- The Journal of Economic Inequality
- Accession number :
- edsair.doi.dedup.....af7f3aa542d7635ed724515d4209507b