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Since the 1970s, Chile has exhibited a highly skewed income distribution accompanied with strong fluctuations over time … 1990s, resulting from better economic and social policies in the return to democracy. Nonetheless, Chile still faces … significant challenges to improve development. There must be an active macroeconomic policy focused on the real economy. Chile …
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We study the effect of power sharing over income redistribution among different socio-economic groups in a model of redistributive politics with fairness concern. We prove that a unique pure-strategy equilibrium exists under fairly general conditions; and we show that equilibrium transfers...
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