CLEMENS, CHRISTIANE; HEINEMANN, MAIK - In: Manchester School 73 (2005) 4, pp. 500-521
This paper discusses the emergence of endogenous redistributive cycles in a stochastic growth model with incomplete asset markets and heterogeneous agents who vote on the degree of progressivity in the tax-transfer scheme. The model draws from Bénabou (in B. S. Bernanke and J. J. Rotemberg...