Arbeitspapier

Multiple politico-economic regimes, inequality and growth

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.

Language
Englisch

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

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

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

Handle
URN
urn:nbn:de:kobv:11-10050320
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Desdoigts, Alain
  • Moizeau, Fabien
  • Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Time of origin

  • 2001

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