How effective were fiscal support measures in absorbing the inflation-induced rise in consumption expenditures in 2022?

Maidorn, Reiss  – Working Paper 8 –  Dezember 2022

We analyze the distributional impact of the substantial fiscal measures implemented in Austria to support household incomes amidst the sizable increase in inflation in 2022. A large part of these measures were universal transfers benefiting all households. Therefore, when we look at absolute amounts, low-income households profited from the fiscal measures to a similar extent like high-income households. When we look at the ratio of transfers to disposable incomes, low-income households profited much more. Furthermore, within the lower income quintiles, households more affected by the inflation shock received lower additional transfers than those less affected by the inflation shock. Overall, the fiscal measures did not fully offset the inflation-induced increase in consumption expenditure for households severely affected by the inflation shock across the income spectrum, including those in the bottom quintile.

Publikationsjahr: 2022
Haupt-Download: How effective were fiscal support measures in absorbing the inflation-induced rise in consumption expenditures in 2022?