D2.6.2 Working paper on modeling the the effect of different types of government interventions on the distribution of income and inequality.

A paper that will provide two main contributions. On the empirical side it will produce a first comprehensive cross-country analysis of the effects of fiscal policy on the labour share of income. There is no such study available neither for developed nor for developing countries. Second it will present a DSGE model with a detailed modelling of the Government sector by distinguishing between different types of fiscal policy. Such a model will be used to analyse the effect of different types of government interventions on the distribution of income and inequality.