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Since the 1970s, Chile has exhibited a highly skewed income distribution accompanied with strong fluctuations over time … 1990s, resulting from better economic and social policies in the return to democracy. Nonetheless, Chile still faces … significant challenges to improve development. There must be an active macroeconomic policy focused on the real economy. Chile …
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The aim of the paper is to explore the influences of initial inequality on the long run distribution of wealth. The paper presents two mathematical models that analyse the occupational choice of individuals in the presence of capital constraints and risk in entrepreneurial activities. The models...
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We study the effect of power sharing over income redistribution among different socio-economic groups in a model of redistributive politics with fairness concern. We prove that a unique pure-strategy equilibrium exists under fairly general conditions; and we show that equilibrium transfers...
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The relationship between inequality and redistribution is usually studied under the assumption that the government collects different amounts of taxes from each citizen (voter) but gives back the same amount (in cash or in kind) to everyone. In this paper we consider what happens if the...
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