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This paper explores the link between default risk and fiscal procyclicality. We show that countries with higher sovereign risk have a more procyclical fiscal expenditure policy, which is driven mostly by transfers. We build a small open economy model with income inequality, social transfers, and...
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We conduct a laboratory experiment to study how demand for redistribution of income depends on self-interest, insurance … is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with …
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in fiscal redistribution across modern welfare states. Contrary to the assertion that there is robust evidence in support … than earnings) is positively associated with fiscal redistribution. In sum, revisiting an influential contribution to the … literature offers no support for the proposition that the structure of inequality has consequences for fiscal redistribution. …
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