Financial Crises, Poverty, and Income Distribution
By E. Baldacci, Luiz de Mello, Gabriela Inchauste. Social Science Research Network, 2002
163 citations recorded by the source corpus.
Developing and transition economies are prone to financial crises, including balance of payments and banking crises. These crises affect poverty and the distribution of income through a variety of channels: slowdowns in economic activity, relative price changes, and fiscal retrenchment, among others. This paper deals with the impact of financial crises on the incidence of poverty and income distribution, and discusses policy options that can be considered by governments in the aftermath of crises. Empirical evidence, based on both macro- and microlevel data, shows that financial crises are associated with an increase in poverty and, in some cases, income inequality. The provison of targeted safety nets and the protection of specific social programs from fiscal retrenchment remain the main short-term propoor policy responses to financial crises.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/1c53e70e4977e04bcb1354ec676f57a7e9de87aa
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Citations in the corpus
- Global Inequality: Beyond the Bottom Billion – A Rapid Review of Income Distribution in 141 Countries (2011, unknown): “Above all, historical analyses show that financial crises often deepen poverty and worsen income inequalities (Baldacci et al. 2002).”
- Economic Crises and Natural Disasters: Coping Strategies and Policy Implications (2003, methodology): “For an example of a study using the double difference estimator to evaluate the impact of financial crises see Baldacci et al. (2002).”