Fiscal policy, growth and income distribution in the UK

Haughtony, Jonathan; Tuerck, David G.; Bhattarai, Keshab; Haughton, Jonathan Henry; Tuerck, David

Abstract

Income and income inequality increased substantially in the UK during the industrial revolution. Income inequality was the highest around 1880. This triggered enactments of more egalitarian tax and transfer system, which halved income inequality by the 1960s. Inequality has risen again with fiscal system reforms in the last five decades. By analysing solutions of a dynamic computable general equilibrium (DCGE) model we show how policies could be designed for the optimal equitable paths of UK economy in the 21st century.

Citation

Haughtony, J., Tuerck, D. G., Bhattarai, K., Haughton, J. H., & Tuerck, D. (2015). Fiscal policy, growth and income distribution in the UK. Applied economics and finance, 2(3), 20-36. https://doi.org/10.11114/aef.v2i3.830

• Journal Article Type: Article
• Acceptance Date: Apr 23, 2015
• Online Publication Date: May 17, 2015
• Publication Date: 2015-08
• Deposit Date: May 27, 2015
• Publicly Available Date: Nov 23, 2017
• Journal: Applied economics and finance
• Print ISSN: 2332-7308
• Electronic ISSN: 2332-7294
• Publisher: Redfame Publishing
• Peer Reviewed: Peer Reviewed
• Volume: 2
• Issue: 3
• Pages: 20-36
• DOI: https://doi.org/10.11114/aef.v2i3.830
• Keywords: Growth; Redistribution; Fiscal policy in UK
• Public URL: https://hull-repository.worktribe.com/output/374387
• Publisher URL: http://redfame.com/journal/index.php/aef/article/view/830
• Additional Information: Copy of article first published in: Applied economics and finance, 2015, v.2, issue 3