Multiple politico-economic regimes, inequality and growth

Arbeitspapier

In this paper, we abandon the stylized median voter and study (i) how distributional tensions can act in many different ways depending on social affinity and on the prospect of upward or downwardmobility of the different income classes, (ii) income distribution dynamics, intergenerational community formation and growth. In a world in which redistributive policies, whether fiscal or educational, affect how the entire economy breaks up into different communities, we find multiple politico-economic regimes that are supported by new international empirical evidence. In particular, we highlight a political economy decision mechanism through which the pressure for redistribution can be highly non linear therefore providing an explanation as to whymore inequality can be associated with less, rather than more, redistributive taxation. Our framework displays multiple steady states which depend on historical economic discrimination. We also provide sufficient conditions on the initial pattern of income distribution and local versus social spillovers ratio under which inequality and segregation persist in the long run.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 373 Discussion Paper ; No. 2001,65

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Educational Finance; Financial Aid ; Job, Occupational, and Intergenerational Mobility; Promotion ; Capitalist Systems: Political Economy
• Subject: growth ; Community formation ; human capital ; redistribution ; social mobility

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Desdoigts, Alain ; Moizeau, Fabien
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
• (where): Berlin
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/62738
• URN: urn:nbn:de:kobv:11-10050320
• Last update: 10.03.2025, 11:44 AM CET