International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
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Vol. 6, Issue 2 (2023)

Impact of fiscal policy on interstate economic inequality


Anita Rani, Alka and Sumit Kumar

This paper investigates the effects of various fiscal policy instruments on economic growth and income inequality. Transfer payments or an income tax are examples of fiscal policy. The amount of development, income distribution, and degree of political franchise all influence fiscal policy. Political equilibrium endogenous growth models that handle distributional concerns provide reduced-form equations. Furthermore, the data show that government size, education spending, and health spending are all adversely related to wealth disparity only in developed nations. The global distribution of income was shown to be unaffected by public debt. For institutional capability, we discovered that corruption and government effectiveness had no substantial impact on income distribution in developed and developing nations. However, the coefficients of the interactions between fiscal policy and institutional capability, while minor in most situations, show the predicted signals. Some policy suggestions have been made.
Pages : 15-18 | 397 Views | 196 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Anita Rani, Alka, Sumit Kumar. Impact of fiscal policy on interstate economic inequality. Int J Finance Manage Econ 2023;6(2):15-18. DOI: 10.33545/26179210.2023.v6.i2.212
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