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theoretical model in which it is positively related to income inequality, more so under weak institutions, and is negatively … informal sector, income inequality, and institutional quality. The results are shown to be robust with respect to a variety of …
Persistent link: https://www.econbiz.de/10005123893
This paper's point of departure is that low-quality institutions, concentration of political power, and underdevelopment are persistent over time. Its analytical model views an equal distribution of political power as a commitment device to enhance institutional quality thereby promoting growth....
Persistent link: https://www.econbiz.de/10005497846
’ rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters …, however, but inequality in the relative distribution of earning and political power. For each of the three channels of …-country differences in inequality permanent, or gradually narrowing? Equivalently, is there convergence not just in the first moment of …
Persistent link: https://www.econbiz.de/10005123982
importance of initial parental conditions (i.e. the driving force behind the persistence of inequality) enhances mobility and … inequality becomes more persistent. The reduction in the concentration of human capital in technologically-advanced sectors …
Persistent link: https://www.econbiz.de/10005124238
modest increase in overall inequality of market incomes as measured by the Gini coefficient. However, we also document a … income inequality was stronger in East Germany than in West Germany. In both regions, the income concentration process …
Persistent link: https://www.econbiz.de/10005124248
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 studies the impact of income inequality on fiscal conservatism when an increase in inequality affects the …, inequality will then be associated with less, rather than more, redistributive taxation. Furthermore, if the poor are liquidity … constrained then the positive association between inequality and fiscal conservatism will increase the persistence in the dynamics …
Persistent link: https://www.econbiz.de/10005136638
rise in income inequality. Poverty has increased sharply with an estimated 18.5% of the population on incomes below the …
Persistent link: https://www.econbiz.de/10005498039
In this article we quantify the aggregate, distributional and welfare consequences of two revenue neutral flat-tax reforms using a model economy that replicates the U.S. distributions of earnings, income and wealth in very much detail. We find that the less progressive reform brings about a 2.4%...
Persistent link: https://www.econbiz.de/10005662104
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