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Title: The Distributional Effects of Austerity Measures: A Comparison of Six EU Countries
Author: Callan, Tim
Leventi, Chrysa
Levy, Horacio
Matsaganis, Manos
Paulus, Alari
Sutherland, Holly
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Keywords: Austerity
Fiscal consolidation
European Union
Issue Date: 30-Nov-2011
Publisher: European Commission
Citation: Callan,Tim; Leventi,Chrysa; Levy,Horacio; Matsaganis,Manos; Paulus,Alari; Sutherland,Holly, The Distributional Effects of Austerity Measures: A Comparison of Six EU Countries, Dublin, European Commission, November, 2011
Series/Report no.: Books and Monographs published by Other Agencies;209
Abstract: We compare the distributional effects of austerity measures that have been introduced in 6 EU countries in the period of large gorvernment budget deficits following the 2007-8 financial crisis and subsequent economic downturn. We explore the effects of policy changes presented as "austerity measures" in Estonia, Ireland, Greece, Spain, Portugal and the UK, using the EU microsimulation model EUROMOD and the Irish national model, SWITCH. Using a set of common assumptions we find that the burden of fiscal consolidation brought about through changes in components of houselhold disposable income is shared differently across the income distribution in the six countries. At one extreme, in Greece, the better off lose a higher proportion of their incomes than the poor and at the other, in Portugal, the poor lose a higher proportion than the rich.
Description: PUBLISHED
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Appears in Collections:Economics (Scholarly Publications)

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