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This paper studies a constitutional framework that enables sustainable federative agreements. In the model, districts decide on local policies and envision the possibility of entering a federation. Focusing on rules for legislative bargaining in the federation, I find that a non-egalitarian...
Persistent link: https://www.econbiz.de/10001512863
This paper offers an explanation for the widespread phenomenon of uniform public schooling, which is viewed here as a way for the government to precommit itself to restraints on future income redistribution. Such precommitment is likely to enhance accumulation of human capital, to bolster...
Persistent link: https://www.econbiz.de/10001440833
Reduced inequality in human capital may reduce approriation from the rich. They may therefore favor policies such as income transfer and mandatory schooling leads to higher incomes for boththe rich and the poor, and increases the welfare of all. Moreover, it is the optimal policy for the rich,...
Persistent link: https://www.econbiz.de/10001624218
While standard political economy theories suggest a moderating effect of democratization on income inequality, empirical literature has failed to incover any such robust relationship. Here we take yet another look at this issue arguing first, that prevailing ideology may be an important...
Persistent link: https://www.econbiz.de/10001566482
The relationship between the distribution of political rights and that of economic resources has been studied both theoretically and empirically. This paper reviews the exsisting literature and, in particular, the available empirical evidence. Our reading of the literature suggests that formal...
Persistent link: https://www.econbiz.de/10001473849