Frisell, Lars; Lagerlöf, Johan N. M. - C.E.P.R. Discussion Papers - 2004
his reputation for truth telling, we show that the larger the inequality, the less information can credibly be transmitted … to the policy-maker. We also investigate the effects of inequality on welfare, and discuss the welfare effects of … institutions that increase transparency but which, as an unintended side effect, lower the lobbyist’s incentives for truth telling. …