In this paper I develop a positive theory of intergenerational transfers. I argue that transfers are a means to induce … theory in this paper is consistent with a number of regularities: transfers appear to be a luxury good that societies buy …

members choose either a risky reform or a safe alternative each period. When no redistribution is allowed the unique … equilibrium outcome is generically inefficient. When redistribution is allowed (even small amounts), there always exists an … policy experimentation is possible only with a sufficient amount of redistribution. We conclude that veto rights are more of …

in the use of transfer policies to improve its bargaining position. In a model of redistribution to lobbies, the … binding cap on efficient subsidies in place, less efficient subsidies will be used for redistribution even when they serve no … the type of redistribution policy with the government, the inefficient policy may still be used in equilibrium. If …

We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy%u2019s …