Arbeitspapier

Political institutions and income (re-)distribution: Evidence from developed economies

We discuss the effect of formal political institutions (electoral systems, fiscal decentralization, presidential and parliamentary regimes) on the extent and direction of income (re-) distribution. Empirical evidence is presented for a large sample of 70 economies and a panel of 13 OECD countries between 1981 and 1998. The evidence indicates that presidential regimes are associated with a less equal distribution of disposable incomes, while electoral systems have no significant effects. Fiscal competition is associated with less income redistribution and a less equal distribution of disposable incomes, but also with a more equal primary income distribution. Our evidence also is in line with earlier empirical contributions that find a positive relationship between trade openness and equality in primary and disposable incomes, as well as the overall redistributive effort.

Language
Englisch

Bibliographic citation
Series: Freiburger Diskussionspapiere zur Ordnungsökonomik ; No. 13/6

Classification
Wirtschaft
Personal Income, Wealth, and Their Distributions
Taxation and Subsidies: Incidence
Structure, Scope, and Performance of Government
National Government Expenditures and Related Policies: General
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Comparative Economic Systems: General
Subject
Redistribution
Formal Institutions
Fiscal Decentralization
Presidential and Parliamentary Regimes
Electoral Systems

Event
Geistige Schöpfung
(who)
Feld, Lars P.
Schnellenbach, Jan
Event
Veröffentlichung
(who)
Albert-Ludwigs-Universität Freiburg, Institut für Allgemeine Wirtschaftsforschung, Abteilung für Wirtschaftspolitik
(where)
Freiburg i. Br.
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Feld, Lars P.
  • Schnellenbach, Jan
  • Albert-Ludwigs-Universität Freiburg, Institut für Allgemeine Wirtschaftsforschung, Abteilung für Wirtschaftspolitik

Time of origin

  • 2013

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