costs of terror, e.g., approximated by slow growth and poor institutions raise the likelihood of terror and the willingness …

Can a growing welfare state induce a regime switch in the growth rate of an econ-omy? This paper constructs a dynamic … political economy model of economic growth and the welfare state in which both variables are non-linearly related and jointly en …-dogenous. Using a Markov switching framework over the period 1950-2001, we find that the structural decline in growth rates that …

). We show that optimal policy that takes into account SPI transforms a standard concave growth model into a model with both … a poverty trap and endogenous growth. The resulting equilibrium dynamics inherit the properties of government policies … eliminate the poverty trap; when these conditions do not hold, "most" countries eventually reach a balanced growth path. The …

Is it politically feasible for governments to engineer endogenous growth? This paper illustrates two reasonable … political decision mechanisms by which fiscal policy generates endogenous growth with a single accumulable factor, under a … policies that target aggregates generate balanced growth and are Pareto optimal. Policies chosen by the median voter also …

This paper constructs a heterogenous agent model of endogenous distribution and growth. When the labor leisure choice … equals the growth maximizing tax rate. There is no distributive con.ict in the long run. When the labor leisure choice of …, the tax rate under majority voting is less than the growth maximizing tax rate which leads to distributive con.ict in the …

This paper generalizes the analysis of distributive conflict, politics, and growth developed by by Alesina-Rodrik (1994 …). We construct a heterogenous-agent framework in which both growth and the distribution of wealth are endogenous. Due to … implies that the optimal tax rate is the same for all households and equals the growth maximizing tax rate. Hence, there is no …