Standard models of voting on redistribution generate a clear-cut prediction: redistribution increases in income skewness. (the Meltzer-Richard hypothesis) Empirical evidence on this issue is mixed. Changes in income skewness are often accompanied by developments in redistribution into the...

This paper studies the structure and dynamics of consumption and consumption growth inequality. The theoretical framework is a heterogeneous agent model with stochastic labor endowments, where the group mean consumption serves as consumption externality. The main finding is that households'...

This paper explores if more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM...