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This paper aims at characterizing the debt consolidation processes put forward by the Spanish authorities between 1996 and 2007, in order to assess welfare and, in particular, the inequality effects involved.
By using a general equilibrium model with heterogeneous agents, we simulate the Spanish consolidation episode that occurred between 1996 and 2007 to assess the underlying welfare and inequality effects.
44It must be noted that previous analyses as well as this one do not consider inequality effects, which though are highly relevant since the potential of rising earnings equality is a common impediment to labor market policies; see Orszag and Snower (1998), Saint Paul (1995 and 1996).
Recent work from MIT has provided the first and timely systematic evidence that the inequality effects of the H-O framework are much more profound and longer lasting than previously thought.
This shows that populations that only cooperate using imitation mechanisms are highly prone to inequality effects [25], [29] [31].
Thus, our main findings of the inequality effects cannot simply be explained by the match/mismatch signals in the proceeding stage.
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In India, a vast middle class cushions the inequality effect; here, the middle class is small.
This inequality effect of the SAT undermines a range of public values, from providing access to college independent of wealth and privilege to developing problem-solving capabilities.
I follow Kakwani and Pernia ([2000]) to decompose the total changes in welfare into two components: the pure growth effect and the pure inequality effect.
But inequality's effects may go beyond simple access to opportunity: a new study finds that family differences in income and education are directly correlated with brain size in developing children and adolescents.
Similarly, recent research by Nicole Stephens and others sponsored by the Kellogg School of Management at Northwestern, "Unseen Disadvantage," shows that individualist achievement norms generate inequality through effects on undergraduates.
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