Showing 1 - 6 of 6
A democratic society in which the distribution of wealth is unequal elects political parties which tend to represent … of debt service and redistribute income from the rich to the poor. Consequently, inequality sows the seeds for inflation … inequality, for a cross-section of democratic countries. …
Persistent link: https://www.econbiz.de/10005792370
Even relatively poor people oppose high rates of redistribution because of the anticipation that they, or their children, may move up the income ladder. This ‘Prospect of Upward Mobility’ (POUM) hypothesis is commonly advanced to explain why democracies do not engage in large-scale...
Persistent link: https://www.econbiz.de/10005662178
redistributions decreases with the degree of inequality, at least over some range. Moreover, capital market imperfections make future … high inequality and low redistribution, or vice versa. Temporary shocks to the distribution of income or the political …
Persistent link: https://www.econbiz.de/10005792191
The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment; and the political difficulties in implementing more extensive reform programmes. We argue that the heart of...
Persistent link: https://www.econbiz.de/10005123912
This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent economy. Such redistributive policies entail distortions to labour supply and savings, but also serve as partial substitutes for missing credit and insurance markets. The resulting...
Persistent link: https://www.econbiz.de/10005124288
This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using … interactive information on U.S. income inequality, the link between top income tax rates and economic growth, and the estate tax …. We find that the informational treatment has very large effects on whether respondents view inequality as an important …
Persistent link: https://www.econbiz.de/10011084154