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Article The Effect of Tax Justice on Income Redistribution: Empirical Evidence from OECD Countries(Akademiai Kiado Zrt, 2026) Ozkok Cubukcu, Dilek; Unalan, GokhanIncome taxation is theoretically considered one of the most effective and widely used tools of public finance for correcting income inequality. However, its actual redistributive capacity varies significantly across countries and depends on the design of tax instruments. This study isolates the effects of taxation from transfers to examine whether justice-based tax instruments-such as progressive tax rates, minimum living allowance (MLA), and tax credits-enhance redistribution. To empirically assess these relationships, a dynamic panel dataset covering 38 countries (37 OECD members and Bulgaria) between 2005 and 2020 is constructed. The System GMM method is applied to estimate the model. On average, taxation accounts for 26% of total redistribution, and its effect is significantly enhanced by equity-oriented tax policies. A one-point increase in tax progressivity leads to a 0.731-point rise in redistribution (P < 0.01), and tax credits have a similarly significant positive effect (+0.266). In contrast, personal allowances and zero-rate brackets show no statistically meaningful impact. A 10-point increase in the MLA index leads to a 0.4-point reduction in redistribution, suggesting that applying horizontal equity (equal treatment across household types) may undermine efforts to improve vertical equity (reducing income inequality). These findings highlight the importance of designing targeted and fairness-driven tax instruments to strengthen the redistributive role of taxation, beyond dependence on transfer mechanisms.Article Citation - WoS: 3Citation - Scopus: 6The Impact of Increases in Housing Prices on Income Inequality: a Perspective on Sustainable Urban Development(Mdpi, 2025) Unalan, Gokhan; Camalan, Ozge; Yilmaz, Hakki HakanThis study examines the impact of housing price increases on income inequality using the dynamic system GMM for OECD countries (2010-2021). We test the hypothesis that housing price appreciation affects income distribution differently based on economic development levels and homeownership patterns. The analysis is conducted both for the entire sample and by dividing countries into two groups based on per capita income, Group 1 (16 countries) with below-median per capita GDP and Group 2 (17 countries) with above-median per capita GDP, to account to account for structural differences in housing markets, financial systems, and wealth accumulation mechanisms. The findings show that rising housing prices help reduce income inequality, especially in countries that are relatively low-income and where more low-income households own their homes. Specifically, our estimates indicate that a one-point increase in the housing price index leads to a statistically significant (p < 0.05) 0.21 percentage point reduction in the Gini change rate in lower-income countries. However, in higher-income countries, the effect of housing prices on inequality is statistically insignificant, suggesting that the relationship between housing markets and income inequality varies across different economic contexts. This insignificance likely stems from countervailing forces: while housing appreciation increases wealth for homeowners, higher housing costs may disproportionately burden lower-income households through rental markets in these economies. The findings highlight the importance of country-specific housing programs that consider homeownership patterns and financial market access in tackling inequality, along with comprehensive public social policies. Our study has implications for policymakers seeking to address inequality through housing market interventions, particularly during the post-2008 recovery period and into the early pandemic phase.
