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Income Inequality, Fiscal Stimuli and Political (In)Stability

Institutional quality

  • Income Inequality, Fiscal Stimuli and Political (In)Stability

    Using data for a large panel of countries, this paper investigates the role played by income inequality and fiscal stimuli episodes in shaping the likelihood of political stability. By means of Tobit estimations, we show that a rise in inequality increases the probability of government crises.