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This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact...
Persistent link: https://www.econbiz.de/10011078011
, redistribution and inequalities. Our work is centered on two axes : i) the importance of psychology with regards to inequalities in … beliefs. We end at an explanation, of a psychological nature, for cross-country disparities in TFP, production, redistribution …
Persistent link: https://www.econbiz.de/10011093907
In the present paper we uncover a novel mechanism through which a minority can gain a disproportionate power in a perfectly functioning democracy. In our model, a government elected by majority within a two party democracy, decides on a unique redistributive instrument, the tax rate. We show...
Persistent link: https://www.econbiz.de/10011095108
The paper examines how legal, economic, political and social institutions fare with different measures of inequality in a cross section framework. We differentiate between institutions based on four categories which are legal, economic, political and social. Among legal institutions, rule of law...
Persistent link: https://www.econbiz.de/10011095140
part explained by the public goods nature of redistribution. Our results suggest that the declared preferences of workers … these results suggest that preferences for redistribution in the form of unemployment benefits are driven by insurance …
Persistent link: https://www.econbiz.de/10011096683
This paper studies the design of tax systems that implement a planner's secondbest allocation in a market economy. An example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations. Hammond's (1979) "principle of taxation" proves that any...
Persistent link: https://www.econbiz.de/10011097060
-) groups of member states, we illustrate the winners and losers from an optimal EU-wide income redistribution across the Union …. While the need for centralized redistribution grows with the number of heterogeneous member states, the implementation of a …
Persistent link: https://www.econbiz.de/10011097465
Taxes and transfers can have significant impacts on poverty and inequality. All standard measures are by definition anonymous in the sense that we do not know the identity of winners and losers. That a given combination of taxes and transfers makes some of the poor poorer, however, may be...
Persistent link: https://www.econbiz.de/10011098387
differences between, rather than within, states. I study the welfare implications of redistribution of education expenditures by … endogenous state policies. The net welfare effect of Federal redistribution depends on a trade-off between the positive effect of …. Federal redistribution increases welfare in a calibrated version of the model. …
Persistent link: https://www.econbiz.de/10011099994
, characterized by the combination of high levels of redistribution and low political accountability and social inclusiveness may well … onto the streets. More specifically, it is shown that authoritarianism reduces the positive effect of redistribution on …
Persistent link: https://www.econbiz.de/10011100170