The outbreak of the new coronavirus since December 2019 in Wuhan, China, caused many negative effects on countries around the world. This crisis was initially recognized only as a threat to public health; But with its epidemic in most countries of the world, it became a serious crisis for the global economy.The shock caused by the Covid-19 crisis has had various impacts on the economic situation of countries around the world. Income inequality is one of the most important areas affected by the crisis. Hence, the aim of this study is to investigate the effect of the shock caused by this crisis on income inequality for (22) developed countries and (46) developing countries during the years (2020 to 2022 AD) using a seasonal panel vector autoregression (PVAR) model. The results indicate that the Covid-19 crisis has increased income inequality in both developed and developing countries. What can be inferred from the results of the impact reaction functions is that with the onset of the crisis, the effects of the direct tax shock, the degree of trade openness, the strictness index and the rate of covid-19 infection on the Gini coefficient in both groups of countries have led to an increase in income inequality. Also, in developed countries, the effect of the human development index shock on the Gini coefficient is negative, but in developing countries, the effect is positive and has increased income inequality. The results of variance analysis of prediction error for both groups of countries show that the strictness index is the dominant factor in explaining the variance analysis of Gini coefficient prediction error.
vaisi, J., Jafari, H., Karimi Potanlar, S., & Jafari Samimi, A. (2024). Examining the effect of the Covid-19 crisis on income inequality:
Evidence from developed and developing countries. Public Sector Economics Studies, 3(2), 247-270. doi: 10.22126/pse.2024.10530.1121
MLA
Jalal vaisi; Hosain Jafari; Saeed Karimi Potanlar; Ahmad Jafari Samimi. "Examining the effect of the Covid-19 crisis on income inequality:
Evidence from developed and developing countries". Public Sector Economics Studies, 3, 2, 2024, 247-270. doi: 10.22126/pse.2024.10530.1121
HARVARD
vaisi, J., Jafari, H., Karimi Potanlar, S., Jafari Samimi, A. (2024). 'Examining the effect of the Covid-19 crisis on income inequality:
Evidence from developed and developing countries', Public Sector Economics Studies, 3(2), pp. 247-270. doi: 10.22126/pse.2024.10530.1121
VANCOUVER
vaisi, J., Jafari, H., Karimi Potanlar, S., Jafari Samimi, A. Examining the effect of the Covid-19 crisis on income inequality:
Evidence from developed and developing countries. Public Sector Economics Studies, 2024; 3(2): 247-270. doi: 10.22126/pse.2024.10530.1121
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