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The relationship between the degree of inequality and the demand for redistribution has been a central question in … gap between the income of the average and the median voter, should lead to increased demand for redistribution, as … demand for redistribution. Part of the explanation of this puzzle lies in the realization that it is not only (or even mainly …
Persistent link: https://www.econbiz.de/10012660048
Stimulus transfers are widely used during economic downturns, yet they are often poorly targeted from an economic perspective. I show that political incentives might help explain this discrepancy. I study one of the largest stimulus tax credits in Italy which excluded the poorest individuals and...
Persistent link: https://www.econbiz.de/10015421924
expenditures has remained remarkably stable over time. Income pooling within the family and redistribution by the government have …
Persistent link: https://www.econbiz.de/10014322873
and then falls for higher income quintiles, consistent with median voter political economy theory and what Stigler called … redistribution and a modest effect of two year led inequality …
Persistent link: https://www.econbiz.de/10014544770
The distribution of human capital and income lies at the center of a nexus of forces that shape a country's economic, institutional and technological structure. I develop here a unified model to analyze these interactions and their growth consequences. Five main issues are addressed. First, I...
Persistent link: https://www.econbiz.de/10012468322
Politicians may use disguised' redistributive policies in order to circumvent opposition to explicit tax-transfer schemes. First, we present a theoretical model that formalizes this hypothesis; then we provide evidence that in US cities, politicians use public employment as such a redistributive...
Persistent link: https://www.econbiz.de/10012472067
rates, inequality, and income redistribution. We also extend that model to incorporate social preferences in the form of …
Persistent link: https://www.econbiz.de/10012458719
We study loss aversion in majority voting. First, we show a status quo bias. Second, loss aversion implies a moderating …; however, in the presence of a projection bias, majorities are partially unable to understand how fast they will adapt. Fourth … status quo. The application of these results to a model of redistribution leads to empirically plausible implications …
Persistent link: https://www.econbiz.de/10012457589
Using a panel of U.S. school districts spanning 1970 - 2000, we examine the relationship between income inequality and fiscal support for public education. In contrast with recent theoretical and empirical work suggesting a negative relationship between inequality and public spending, we find...
Persistent link: https://www.econbiz.de/10012462558
This paper argues that worker cooperatives are prone to redistribution among members, and that this redistribution …
Persistent link: https://www.econbiz.de/10012472696