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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 … such activities, thus exacerbating inequality among a large part of the population. We then survey the existing empirical …
Persistent link: https://www.econbiz.de/10013071520
Within developing and newly industrialized countries, rising wage inequality is both common and highly correlated with … model Southern catch-up induces a correlation between rising inequality and export growth. It also induces a shift in trade … patterns that results in skill upgrading and rising inequality in both the South and the North. A rudimentary empirical …
Persistent link: https://www.econbiz.de/10013249349
We assemble a novel dataset of matched legislative and constituent votes and demonstrate that less income does not mean less representation. We show 1) The opinions of high and low income voters are highly correlated; the legislator's vote often reflects the desire of both. 2) What differences in...
Persistent link: https://www.econbiz.de/10013129121
Different beliefs about how fair social competition is and what determines income inequality, influence the … income inequality and choices of redistributive policies …
Persistent link: https://www.econbiz.de/10013134300
The 1990's dealt a blow to traditional Heckscher-Ohlin analysis of the relationship between trade and income inequality …, as it became clear that rising inequality in low- income countries and other features of the data were inconsistent with … that model. As a result, economists moved away from trade as a plausible explanation for rising income inequality. In …
Persistent link: https://www.econbiz.de/10013137608
We review studies of the impact of credit constraints on the accumulation of human capital. Evidence suggests that credit constraints are increasingly important for schooling and other aspects of households' behavior. We highlight the importance of early childhood investments, since their...
Persistent link: https://www.econbiz.de/10013120281
Recent policy proposals have suggested taxing top incomes at very high rates on the grounds that some or all of the highest wage earners are engaged in socially unproductive or counterproductive activities, such as externality imposing speculation in the financial sector. To address this, we...
Persistent link: https://www.econbiz.de/10013125562
We use unique data from 600 Indonesian communities on what individuals know about the poverty status of others to study how network structure influences information aggregation. We develop a model of semi-Bayesian learning on networks, which we structurally estimate using within-village data....
Persistent link: https://www.econbiz.de/10013101274
We study patterns of FDI in a multi-country world economy. We develop a model featuring non-homothetic preferences for quality and monopolistic competition in which specialization is purely demand-driven and the decision to serve foreign countries via exports or FDI depends on a...
Persistent link: https://www.econbiz.de/10013067204
We treat rising inequality is an equilibrium outcome in which human capital investment fails to keep pace with rising … each other, magnifying inequality. When skill-biased technical change drives economic growth, greater inequality reduces …
Persistent link: https://www.econbiz.de/10013001789