This paper presents a political economy model of inflation as a result of social conflict. Agents are heterogeneous in … terms of income. Agents’ income levels determine their ability to hedge against the effects of inflation. The interaction of … model makes a number of predictions concerning which environments are conducive to the emergence of inflation. Inflation …

aggregates. The data show that periods of increased inflation uncertainty are associated with substantial reductions in total …

inflation is low. Despite the substantial numbers of individuals whose nominal wages fall from one year to the next, we find … that if long-run inflation is one percent higher, the number of individuals with negative real pay growth increases by …

inflation to rise in the short term. Our results also suggest that the effects on aggregate supply have grown stronger in recent …

Commodity taxes have three distinct roles: (1) revenue collection, (2) interpersonal redistribution, and (3) resource …

Public provision of private goods such as education is usually viewed as a form of redistribution in kind. However …, does it arise when income redistribution is feasible as well? In this paper I analyse a two-dimensional model of political … decision making. Society has to choose both the tax rate and the allocation of the revenues between income redistribution and …

rise in inequality will lead to more redistribution. This paper shows that, for the UK in the period 1983-2004, a plausibly … exogenous rise in income inequality has not been associated with increased redistribution. We then explore this further using … attitudinal data. We show that the demand for redistribution, having shown considerable variation over time, is at an all-time low …