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We present a model of growth and distributional conflict that implies a non-monotonic relationship between average wealth and the likelihood of radical redistribution: while the net benefits of redistribution for members of the poor class are small at low stages of development, a shift towards...
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We develop a model of growth and distributional conflict which demonstrates that social tensions may peak at an intermediate development stage. In fact, unless the economy is caught in an underdevelopment trap, the relationship between average wealth and the likelihood of radical redistribution...
Persistent link: https://www.econbiz.de/10014065336