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Did democracy bring redistribution? Insights from the Spanish tax system, 1960-90

Torregrosa Hetland, Sara LU (2015) In European Review of Economic History 19(3). p.294-315
Abstract

The relationship between democracy, inequality, and redistribution has inspired extensive research, but consensus is still elusive. In order to contribute to this discussion, the author analyzes the Spanish case, where transition to democracy was accompanied by a comprehensive tax reform, aiming at increasing progressivity and revenue. But how effectively did it change the distribution of the tax burden? Was there a fiscal revolution? The results show that persistent regressivity (albeit decreasing) exacerbated income inequality, failing to attain convergence with more developed countries. The joint effect of the fiscal system, however, was slightly positive due to progressive social spending.

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author
publishing date
type
Contribution to journal
publication status
published
subject
in
European Review of Economic History
volume
19
issue
3
pages
22 pages
publisher
Cambridge University Press
external identifiers
  • Scopus:84939626543
ISSN
1361-4916
DOI
10.1093/ereh/hev006
language
English
LU publication?
no
id
00580044-dbab-42c2-8a07-1a99f6f75013
date added to LUP
2016-05-26 18:13:02
date last changed
2017-01-01 08:27:02
@article{00580044-dbab-42c2-8a07-1a99f6f75013,
  abstract     = {<p>The relationship between democracy, inequality, and redistribution has inspired extensive research, but consensus is still elusive. In order to contribute to this discussion, the author analyzes the Spanish case, where transition to democracy was accompanied by a comprehensive tax reform, aiming at increasing progressivity and revenue. But how effectively did it change the distribution of the tax burden? Was there a fiscal revolution? The results show that persistent regressivity (albeit decreasing) exacerbated income inequality, failing to attain convergence with more developed countries. The joint effect of the fiscal system, however, was slightly positive due to progressive social spending.</p>},
  author       = {Torregrosa Hetland, Sara},
  issn         = {1361-4916},
  language     = {eng},
  month        = {08},
  number       = {3},
  pages        = {294--315},
  publisher    = {Cambridge University Press},
  series       = {European Review of Economic History},
  title        = {Did democracy bring redistribution? Insights from the Spanish tax system, 1960-90},
  url          = {http://dx.doi.org/10.1093/ereh/hev006},
  volume       = {19},
  year         = {2015},
}