Masood

THE EFFECT OF MACROECONOMIC VARIABLES ON THE statistical distribution OF INCOME: THE CASE OF SWITZERLAND by Yves Flückiger, University of Geneva Milad Zarin-Nejadan, University of Neuchâtel * ABSTRACT This paper seeks to analyze how business cycle variations affect the distribution of income in Switzerland. The data used in this study are taken from the Swiss federal personal income tax statistics for 1951-1986. The endings of our analysis see that productivity gains tend to mend the relative income share of the poor. It appears also that inflation acts like a progressive tax in Switzerland. Finally, our study emphasizes that macroeconomic downswings decrease income inequality in Switzerland and this result can be explained by the very selective and suppressive Swiss immigration policy. THE EFFECT OF MACROECONOMIC VARIABLES ON THE DISTRIBUTION OF INCOME: THE CASE OF SWITZERLAND by Yves Flückiger, University of Geneva Milad Zarin-Nejadan, University of Neuchâtel * 1. INTRODUCTION The study of how macroeconomic policies affect income distribution has been gaining nervous impulse during the past few years.

Although income distribution and poverty issues traditionally endure been framed in microeconomic terms, it is now widely recognise that these subjects also should be analyzed along macroeconomic lines. The designer for the interest in the study of the cyclical aspects of the distribution of income is twofold. First, in the 1970s and 1980s, there was a surge of poverty in the industrialized world virtually unknown since the Great Depression. Second, in developing countries, stabilization programs seem generally to have failed to improve the situation of the poor and even to have resulted in a less equal distribution of income than before. This raises the question of who profits and who suffers from macroeconomic fluctuations. In Switzerland, which traditionally has enjoyed one of the highest per capita incomes in the world, the so-called new Poverty... If you want to get a full essay, order it on our website: Orderessay

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