Arbeitspapier
Inequality, Politics, and Economic Growth : Three Critical Questions on Politico-Economic Models of Growth and Distribution
This paper questions the three standard propositions used by politico-economic models of growth and distribution according to which (1) rising inequality induces more government redistribution; (2) more government redistribution is financed by higher distortionary taxation; and (3) higher distortionary taxes reduce economic growth. We present a variety of theoretical arguments demonstrating that all three propositions may be overturned by simply changing an assumption in a plausible way or adding a relevant real-world element to the basic models. The politico-economic models of growth and distribution, as well as the specific inequality-growth transmission channel they propose, must therefore be assessed as overly simplistic and inadequate with respect to the issues studied.
- Language
-
Englisch
- Bibliographic citation
-
Series: Diskussionspapier ; No. 3
- Classification
-
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- Subject
-
Political Economy
Redistribution
Inequality
Economic growth
Einkommensverteilung
Einkommensumverteilung
Wirtschaftswachstum
Public Choice
Kritik
- Event
-
Geistige Schöpfung
- (who)
-
Josten, Stefan Dietrich
Truger, Achim
- Event
-
Veröffentlichung
- (who)
-
Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre
- (where)
-
Hamburg
- (when)
-
2003
- Handle
- URN
-
urn:nbn:de:gbv:705-opus-1316
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Josten, Stefan Dietrich
- Truger, Achim
- Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre
Time of origin
- 2003
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