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Distributive Politics and Economic Growth
Open accessAbstract
This paper studies the relationship between political conflict and economic growth in a simple model of endogenous growth with distributive conflicts.We study both the case of two llclassesfl (workers and capitalists) and the case of a continuum distribution of agents, characterized by different capital/labor shares.We establish several results concerning the relationship between the political influence of the two groups and the level of taxation, public investment, redistribution of income and growth.For example, it is shown that policies which maximize growth are optimal only for a government that cares only about the capitalists."Also, we show that in a democracy (where the "median voter theorem' applies) the rate of taxation is higher and the rate of growth lower, the more unequal is the distribution of wealth We present empirical results consistent with these implications of the model.
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Cites
A Rational Theory of the Size of Government
Meltzer, A. H., & Richard, S. F. (1981) · Journal of Political Economy · doi:10.1086/261013 · Cited by 5,485
Clausulas comparativas do portugues
Romualdo, J. D. A. (1975) · LA Referencia (Red Federada de Repositorios Institucionales de Publicaciones Científicas) · Cited by 4,339
Economic growth and income inequality (2000-15)
(2018) · Africa’s development dynamics · doi:10.1787/9789264302501-graph65-en · Cited by 2,549
Summers, R., & Heston, A. (1988) · Review of Income and Wealth · doi:10.1111/j.1475-4991.1988.tb00558.x · Cited by 1,238
Individual welfare, majority voting, and the properties of a linear income tax
Romer, T. (1975) · Journal of Public Economics · doi:10.1016/0047-2727(75)90016-x · Cited by 922
Voting over income tax schedules
Roberts, K. W. S. (1977) · Journal of Public Economics · doi:10.1016/0047-2727(77)90005-6 · Cited by 794
Political Equilibrium, Income Distribution, and Growth
Perotti, R. (1993) · The Review of Economic Studies · doi:10.2307/2298098 · Cited by 746
Mayer, W. (1984) · American Economic Review · Cited by 682
Is Inequality Harmful for Growth? Theory and Evidence
Persson, T., & Tabellini, G. (1991) · National Bureau of Economic Research · doi:10.3386/w3599 · Cited by 672
Size Distribution of Income: A Compilation of Data.
Wynn Peter, M., & Jain, S. (1977) · Population and Development Review · doi:10.2307/1971772 · Cited by 358
Cited by
The Middle Class Consensus and Economic Development
Easterly, W. (2001) · Journal of Economic Growth · doi:10.1023/a:1012786330095 · Cited by 971
Easterly, W., Kremer, M., Pritchett, L., & Summers, L. H. (1993) · Journal of Monetary Economics · doi:10.1016/0304-3932(93)90026-c · Cited by 561
More evidence on income distribution and growth
Clarke, G. R. G. (1995) · Journal of Development Economics · doi:10.1016/0304-3878(94)00069-o · Cited by 560
An African Success Story: Botswana
Acemoglu, D., Johnson, S. H., & Robinson, J. A. (2001) · SSRN Electronic Journal · doi:10.2139/ssrn.290791 · Cited by 553
Why Doesn't the US Have a European-Style Welfare System?
Alesina, A., Glaeser, E., & Sacerdote, B. (2001) · National Bureau of Economic Research · doi:10.3386/w8524 · Cited by 431
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Metadata
- Authors
- Alesina, A., & Rodrik, D.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1991-03
- OpenAlex
- W2147618847
- Cited by
- 408
- References
- 12
- Type
- report
- Language
- en
- Open access
- green
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