Inflation, Inequality, and Social Conflict
IMF Working Papers, June 1, 2006
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- Inflation, Inequality, and Social Conflict
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Bibliographic details
- Authors: Christopher W. Crowe
- Published: June 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451864182.001
Summary and theoretical model
- Presents a political economy model to analyze the observed positive relationship between income inequality and inflation.
- Key features of the model:
- Unequal access to inflation-hedging opportunities.
- Unequal access to the political process.
- Central prediction:
- Inequality and "elite bias" in the political system interact to create incentives for inflation.
Empirical strategy and findings
- Empirical focus:
- Tests the model's predicted interaction effect between inequality and elite bias.
- Identification strategy:
- Uses the end of the Cold War as a source of exogenous variation in the political environment.
- Main empirical result:
- Finds robust evidence in support of the model.
Publication and metadata
- Author: Christopher W. Crowe
- Date: June 1, 2006
- Series: Working Paper No. 2006/158
- Issue: 158
- Volume: 2006
- Pages: 37
- DOI: https://doi.org/10.5089/9781451864182.001
- Stock No: WPIEA2006158
- ISBN: 9781451864182
- ISSN: 1018-5941
- Subject: Income distribution, Income inequality, Inflation, Personal income, Political economy
- Keywords: mover accent, WP
IMF Working Paper — Christopher W. Crowe, "Inflation, Inequality, and Social Conflict", Working Paper No. 2006/158.