Arawatari, Ryo; Ono, Tetsuo - Graduate School of Economics, Osaka University - 2008
This paper presents a politico-economic model including a mutual link between earnings mobility and redistribution … mobility and higher redistribution and a rich-majority equilibrium with higher mobility and lower redistribution. In contrast …, a high-risk economy produces a unique, poor-majority equilibrium with high mobility and low redistribution, which …