TY - JOUR
T1 - The Inflation-Inequality Connection in the European Union
T2 - U-Turn to Equity?
AU - Akarsu, Mahmut Zeki
AU - Gharehgozli, Orkideh
N1 - Publisher Copyright:
© 2024, Center for Economic Integration, Sejong University, All Rights Reserved.
PY - 2024/6
Y1 - 2024/6
N2 - 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.
AB - 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.
KW - European Union
KW - inequality
KW - inflation
UR - http://www.scopus.com/inward/record.url?scp=85196427213&partnerID=8YFLogxK
U2 - 10.11130/jei.2024015
DO - 10.11130/jei.2024015
M3 - Article
AN - SCOPUS:85196427213
SN - 1225-651X
VL - 39
SP - 296
EP - 318
JO - Journal of Economic Integration
JF - Journal of Economic Integration
IS - 2
ER -