Azzimonti, Marina; Karpuska, Laura; Mihalache, Gabriel - National Bureau of Economic Research - 2022
-acting force to the rapid increase in income inequality. Using a political-economy model where parties bargain over taxes and … determination, in particular budget rules, make the status quo levels of taxes and entitlements difficult to change. The second one … is that the country experienced a process of "unequal growth," where top earners became richer while the income levels of …