Rawdanowicz

Please cite this paper as:

Rawdanowicz, Ł?., E. Wurzel and A. K. Christensen (2013), “?The Equity Implications of Fiscal Consolidation”?, OECD Economics Department Working Papers, No. 1013, OECD Publishing.

http://dx.doi.org/10.1787/5k4dlvx2wjq0-en

OECD Economics Department Working Papers No. 1013

The Equity Implications of Fiscal Consolidation

Ł?ukasz Rawdanowicz, Eckhard Wurzel, Ane K. Christensen

JEL Classification: H2, H23, H3, H53, I3, I38

Unclassified|ECO/WKP(2013)5|

Organisation de Coopration et de Dveloppement conomiques

Organisation for Economic Co-operation and Development|14-Jan-2013|

English - Or. English

ECONOMICS DEPARTMENT

THE EQUITY IMPLICATIONS OF FISCAL CONSOLIDATION ECONOMICS DEPARTMENT WORKING PAPER No. 1013

By Lukasz Rawdanowicz, Eckhard Wurzel and Ane Kathrine Christensen

All Economics Department Working Papers are available through OECD's Internet website at http://www.oecd.org/eco/Workingpapers

JT03333267

Complete document available on OLIS in its original format

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

ECO/WKP(2013)5

ABSTRACT/RSUM

The equity implications of fiscal consolidation

In several OECD countries, ongoing fiscal consolidation might have a negative impact on the static income distribution. However, this conclusion should be treated only as an approximate first step in the analysis. A full assessment of distributional effects of consolidation packages would need to consider dynamic measures, such as life-time income distribution and the equality of opportunity, along with behavioural responses and interactions with other policies. In any case, there is scope to balance current consolidation efforts in favour of more equity with only limited adverse...