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In this paper we revisit the relationship between democracy, redistribution and inequality. We first explain the … theoretical reasons why democracy is expected to increase redistribution and reduce inequality, and why this expectation may fail …: democracy does not lead to a uniform decline in post-tax inequality, but can result in changes in fiscal redistribution and …
Persistent link: https://www.econbiz.de/10012458917
We study theoretically and empirically whether natural resource windfalls affect political regimes. We document the following regularities. Natural resource windfalls have no effect on the political system when they occur in democracies. However, windfalls have significant political consequences...
Persistent link: https://www.econbiz.de/10012461056
ethnic heterogeneity reduces redistribution. Finally, there is much more inequality and less …less redistribution, and we have little idea whether this relationship is caused by redistribution …redistribution in the U.S. than in most other developed nations …
Persistent link: https://www.econbiz.de/10012467168
In a growth model, rent-grabbing and free riding can give rise to inequality in productivity and firm size. Inequality among firms affects a firm's incentive to free ride or to grab rents, and, hence, the incentive to invest in research and training We follow Lucas and Prescott (1971) and...
Persistent link: https://www.econbiz.de/10012471971
This paper successfully tests on a sample of 70 countries for the period 1960-85 the following hypotheses. Income inequality, by fueling social discontent, increases socio-political instability. The latter, by creating uncertainty in the politico-economic environment, reduces investment. As a...
Persistent link: https://www.econbiz.de/10012474459
An influential thesis often associated with De Tocqueville views social mobility as a bulwark of democracy: when … force making democracy less stable in societies with high social mobility: when the median voter expects to move up … conflicting preferences of her "future selves," and that the evolution of institutions is determined through the implicit …
Persistent link: https://www.econbiz.de/10012456501
wealth tends to undermine democracy. Given high oil prices, some observers see the country as virtually condemned to … around the world suggests that for countries like Russia with an established oil industry, even large increases in the scale …
Persistent link: https://www.econbiz.de/10012462985
. However, the introduction of elections and other early trappings of democracy often has the perverse effect of exacerbating … democracy and capitalism--is to move to a governance structure based on impersonal rules that apply in the same way to everyone …
Persistent link: https://www.econbiz.de/10015072872
redistribution among citizens from different socioeconomic backgrounds and the actual extent of government redistribution. Our focus … on redistribution arises from the inherent class conflicts it engenders in policy choices, allowing us to examine whose … realized redistribution. This finding contradicts the expectations of both leading experts and regular citizens …
Persistent link: https://www.econbiz.de/10014447295
Persistent link: https://www.econbiz.de/10001791053