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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 … suggesting that inequality tends to increase after democratization when the economy has already undergone significant structural …
Persistent link: https://www.econbiz.de/10012458917
means to protect the economic interests of the once ruling elite. Under "democratic federalism" the constitution creates an … annual policy game where the new majority and the elite each control one policy instrument of importance to the other. The … game has a stable, stationary equilibrium that the elite may prefer to autocratic rule. We apply our analysis to South …
Persistent link: https://www.econbiz.de/10012464914
The distribution of human capital and income lies at the center of a nexus of forces that shape a country's economic, institutional and technological structure. I develop here a unified model to analyze these interactions and their growth consequences. Five main issues are addressed. First, I...
Persistent link: https://www.econbiz.de/10012468322
Politicians may use disguised' redistributive policies in order to circumvent opposition to explicit tax-transfer schemes. First, we present a theoretical model that formalizes this hypothesis; then we provide evidence that in US cities, politicians use public employment as such a redistributive...
Persistent link: https://www.econbiz.de/10012472067
This paper develops a politico-economic model for use in studying the role of intra-elite conflict in the simultaneous … determination of a country's political regime, trade policy and income-tax-based redistribution scheme. Three socioeconomic groups … are involved: two elite groups and workers, whose preferences regarding trade policy and income taxation are derived from …
Persistent link: https://www.econbiz.de/10012459340
and then falls for higher income quintiles, consistent with median voter political economy theory and what Stigler called … redistribution and a modest effect of two year led inequality …
Persistent link: https://www.econbiz.de/10014544770
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 considers questions about the implications of rising inequality for the theory and practice of public …
Persistent link: https://www.econbiz.de/10015398143
their effort, it will chose low redistribution and low taxes. In equilibrium effort will be high, the role of luck limited …
Persistent link: https://www.econbiz.de/10012469200