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This paper presents theory and evidence on the relationship between inequality and institutional quality. We propose a model in which the two dynamically reinforce each other and set out to test this relationship with a broad array of institutional measures. We establish double causality between...
Persistent link: https://www.econbiz.de/10010327109
This paper studies the joint effect of economic and political inequalities on redistributive taxation and institutional quality. The theoretical model suggests that income inequality, coupled with political bias in favor of the rich, decreases redistribution and lowers institutional quality. The...
Persistent link: https://www.econbiz.de/10010278272
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Poorer countries have a much smaller public sector and correspondingly a smaller tax burden than richer countries, yet, their economic performance has not been necessarily better. Using a simple model, this paper suggests that the growth and welfare effects of taxation are mediated through...
Persistent link: https://www.econbiz.de/10003775837
This paper studies the joint effect of economic and political inequalities on redistributive taxation and institutional quality. The theoretical model suggests that income inequality, coupled with political bias in favor of the rich, decreases redistribution and lowers institutional quality. The...
Persistent link: https://www.econbiz.de/10003776340
Persistent link: https://www.econbiz.de/10002116938
Persistent link: https://www.econbiz.de/10003311139
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