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Volatility widens inequality. Could aid and remittances help?

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Date
2019
Dewey
Economie internationale
Sujet
Volatility; Inequality; Aid; Remittances
JEL code
F.F2.F24; F.F3.F35; O.O1.O15
Journal issue
Review of World Economics
Volume
155
Number
1
Publication date
2019
Article pages
71-104
Publisher
Springer
DOI
http://dx.doi.org/10.1007/s10290-018-0331-7
URI
https://basepub.dauphine.fr/handle/123456789/19641
Collections
  • LEDa : Publications
Metadata
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Author
Chauvet, Lisa
11609 Institut de Recherche pour le Développement (IRD)
12772 Développement, institutions et analyses de long terme [DIAL]
163511 Laboratoire d'Economie de Dauphine [LEDa]
490669 Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne [CERDI]
Ferry, Marin
163511 Laboratoire d'Economie de Dauphine [LEDa]
12772 Développement, institutions et analyses de long terme [DIAL]
11609 Institut de Recherche pour le Développement (IRD)
Guillaumont, Patrick
945 Centre d'Études et de Recherches sur le Développement International [CERDI]
Guillaumont Jeanneney, Sylviane
945 Centre d'Études et de Recherches sur le Développement International [CERDI]
490669 Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne [CERDI]
Tapsoba, Sampawende J.-A.
172451 "Research Department International Monetary Fund (IMF)" [IMF]
Wagner, Laurent
945 Centre d'Études et de Recherches sur le Développement International [CERDI]
490669 Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne [CERDI]
Type
Article accepté pour publication ou publié
Abstract (EN)
We analyse the relationship between income volatility and inequality and the conditional role played by aid and remittances. Using a panel of 142 countries for the period 1973–2012, we confirm a well-established finding among the literature that income volatility has an adverse impact on inequality, and that the poorest people are the most exposed to these fluctuations. However, while aid and remittances do not seem to have a clear direct impact on inequality, we uncover robust evidence that suggests that aid helps dampen the negative effects of volatility on the distribution of income, while remittances do not.

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