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This paper studies optimal dynamic tax policy under the threat of political reform. A policy will be reformed ex post if a large enough political coalition supports reform; thus, sustainable policies are those that will continue to attract enough political support in the future. We find that...
Persistent link: https://www.econbiz.de/10011168909
rise in income inequality. Poverty has increased sharply with an estimated 18.5% of the population on incomes below the …
Persistent link: https://www.econbiz.de/10005498039
-2006. While there has been no increase in aggregate happiness, inequality in happiness has fallen substantially since the 1970s … happiness by education have widened substantially. We develop an integrated approach to measuring inequality and decomposing … changes in the distribution of happiness, finding a pervasive decline in within-group inequality during the 1970s and 1980s …
Persistent link: https://www.econbiz.de/10005136431
This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using … interactive information on U.S. income inequality, the link between top income tax rates and economic growth, and the estate tax …. We find that the informational treatment has very large effects on whether respondents view inequality as an important …
Persistent link: https://www.econbiz.de/10011084154
The paper examines the appropriate domain of the Welfare State by exploring the areas in which free enterprise fails to provide adequate welfare state services. The paper outlines a simple coherent strategy for formulating government welfare state policy by identifying the relevant market...
Persistent link: https://www.econbiz.de/10005788942
or societal laws benefiting religious citizens. Rising income inequality can, however, lead some of the rich to form a …
Persistent link: https://www.econbiz.de/10011262883
excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how … configurations of technology, inequality and redistributive policy are feasible in the long run, when all three are endogenous. I … show in particular how the diffusion of technology leads to the ‘exporting’ of inequality across borders; and how this, in …
Persistent link: https://www.econbiz.de/10005661547
relationship between inequality and redistribution is nonmonotonic; societies with intermediate levels of inequality consolidate … redistributive than a nondemocratic regime, and this gives the elite an incentive to mount a coup. Because inequality makes democracy … democracy and redistribute more than both very equal and very unequal countries. We also show that asset redistribution, such as …
Persistent link: https://www.econbiz.de/10005661707
inequality and environmental protection. We present a class of models (which captures a static model as well as an overlapping …
Persistent link: https://www.econbiz.de/10005662063
curve in many Western economies during this period, with the fall in inequality following redistribution due to … widespread social unrest and revolution. Political transition, rather than redistribution under existing political institutions … political equilibria and acts as a commitment to redistribution. Our theory also offers a novel explanation for the Kuznets …
Persistent link: https://www.econbiz.de/10005791338