Distributive Politics and Economic Growth
Abstract
We study the relationship between politics and economic growth in a simple model of endogenous growth with distributive conflict among agents endowed with varying capital/labor shares. We establish several results regarding the factor ownership of the median individual and the level of taxation, redistribution, and growth. Policies that maximize growth are optimal only for a government that cares solely about pure “capitalists.” The greater the inequality of wealth and income, the higher the rate of taxation, and the lower growth. We present empirical results that show that inequality in land and income ownership is negatively correlated with subsequent economic growth.
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Conflict from ethnic diversity results in low incomes, low levels of schooling, and insufficient infrastructure.
“First, ethnic diversity creates more conflict in society, which results in low incomes, low levels of schooling, and insufficient infrastructure (Alesina and Rodrik 1994;Alesina and Spolaore 1997;Easterly and Levine 1997).”
From Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries? (2025) · cites this paper as Alesina and Rodrik 1994
The Introduction (p. 2) links distributive conflict between labor and capital to economic growth and public investment; Section 5 (p. 29) reports that income inequality is associated with weaker growth in democracies. The paper does not establish that ethnic diversity causes conflict or that such conflict produces low income levels, low schooling levels, or insufficient infrastructure. (LLM, conf=0.82)
Experimental — accuracy not yet measuredEthnic diversity creates more conflict in society.
“First, ethnic diversity creates more conflict in society, which results in low incomes, low levels of schooling, and insufficient infrastructure (Alesina and Rodrik 1994;Alesina and Spolaore 1997;Easterly and Levine 1997).”
From Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries? (2025) · cites this paper as Alesina and Rodrik 1994
The Introduction (p. 3) links distributive conflict between workers and capitalists to economic growth through taxation and public spending. It does not establish that ethnic diversity creates conflict, or that such conflict causes low schooling and insufficient infrastructure; the source addresses a different kind of division. (LLM, conf=0.82)
Experimental — accuracy not yet measured
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Cites
Stolper, W. F., & Samuelson, P. A. (1941) · The Review of Economic Studies · doi:10.2307/2967638 · Cited by 2,430 · see citing works
Flagged first, then by citations
Research works printed but not linked: 1
- [985]985. Meltzer, Allan H. and Scott F. Richard (1981): "A Rational Theory of the Size of the Government, Journal of Political Economy, 89:914-27. Milesi-Ferretti, Gian Maria (1990): "Do "good" or do "well"? Public debt management in a two-party democracy," unpublished, November. Mohtadi, Hamid and Terry Roe (1990): "Political economy of endogenous growth,' unpublished. Perotti, Roberto (1990): "Political equilibrium income distribution and growth," unpublished, November. Persson, Torsten and Guido Tabellini (1991): "Is Inequality Harmful for Growth: Theory and Evidence," UC Berkeley Working Paper. Roberts, Kevin W. S. (1977): "Voting Over Income Tax Schedules,' Journal of Public Economics, 8:329-40. 36 Rodrik, Dani (1990): "Investment Efficiency Despite Discretionary Capital Taxation by a Redistributive Government," October, unpublished. Romer, Thomas (1975): Individual Welfare, Majority Voting, and the Properties of a Linear Income Tax," Journal of Public Economics, 14:163-85. Tabellini, Guido and Alberto Alesina (1990): "Voting on the budget deficit," American Economic Review, March, 37-52. Terrones, Marco (1989): "Influence Activites and Economic Growth," unpublished. World Bank (1990): World Developniern Report. 1990. Washington, D.C. 37
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Income distribution, political instability, and investment
Alesina, A., & Perotti, R. (1996) · European Economic Review · doi:10.1016/0014-2921(95)00030-5 · Cited by 2,303 · see citing works
Self-citationWhere did all the growth go? external shocks, social conflict, and growth collapses
Rodrik, D. (1999) · Journal of Economic Growth · doi:10.1023/a:1009863208706 · Cited by 1,869 · see citing works
Self-citationInequality and Economic Growth: The Perspective of the New Growth Theories
Aghion, P., Caroli, E., & García-Peñalosa, C. (1999) · Journal of Economic Literature · doi:10.1257/jel.37.4.1615 · Cited by 1,848 · see citing works
Cramer, C. (2002) · World Development · doi:10.1016/s0305-750x(02)00120-1 · Cited by 394 · see citing works
Hassler, J., Rodríguez Mora, J. V., & Zeira, J. (2007) · Journal of Economic Growth · doi:10.1007/s10887-007-9019-x · Cited by 116 · see citing works
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Gonzalez-Eiras, M., & Niepelt, D. (2012) · European Economic Review · doi:10.1016/j.euroecorev.2011.05.007 · Cited by 103 · see citing works
Savani, K., Stephens, N. M., & Markus, H. R. (2011) · Psychological Science · doi:10.1177/0956797611407928 · Cited by 89 · see citing works
The endless nexus between ethnic diversity, social exclusion and institutional quality of Pakistan
Amin, S. (2019) · International Journal of Sociology and Social Policy · doi:10.1108/ijssp-06-2018-0108 · Cited by 21 · see citing works
Sharing the growth dividend: analysis of inequality in Asia
IMF, U., Jain-Chandra, S., Kinda, T., IMF, U., Kochhar, K., IMF, U., Piao, S., Ant Financial Services Group, C., Schauer, J., & IMF, U. (2019) · Journal of Banking and Financial Economics · doi:10.7172/2353-6845.jbfe.2019.2.1 · Cited by 15 · see citing works
Amin, S. (2021) · Society and Business Review · doi:10.1108/sbr-01-2020-0007 · Cited by 9 · see citing works
The Welfare Effects of Land Reform: Lessons from Yunnan, China
Wan, G., Zhang, J., & Zuo, C. (2023) · The Journal of Development Studies · doi:10.1080/00220388.2023.2218001 · Cited by 6 · see citing works
Amin, S., & Murshed, S. M. (2025) · The Developing Economies · doi:10.1111/deve.12434 · Cited by 7 · see citing works
- Authors
- Alesina, A., & Rodrik, D.
- Affiliations
- National Bureau of Economic Research (US)
- ORCID
- Rodrik, D.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1994-05-01
- Volume
- 109
- Issue
- 2
- Pages
- 465-490
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2891894567
- Cited by
- 4,406
- References
- 1
- Citations by year
- 2026: 94 · 2025: 152 · 2024: 110 · 2023: 131 · 2022: 157 · 2021: 184 · 2020: 183 · 2019: 148 · 2018: 153 · 2017: 138 · 2016: 154 · 2015: 160 · 2014: 170 · 2013: 179 · 2012: 166
- FWCI
- 154.42
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- OpenGrey (Institut de l'Information Scientifique et Technique) (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Keywords
- distributive politics, economic growth, endogenous growth, distributive conflict, taxation, redistribution, inequality, land ownership, income inequality, median voter
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