Determinants of governmental redistribution

Arbeitspapier

This paper investigates the major drivers of governmental redistribution. We retest the Meltzer-Richard hypothesis and account for a plethora of political, institutional, and cultural forces that influence the scope of redistribution. Extended and harmonized data on effective redistribution recently provided by the SWIID allows for the assessment of the origins of governmental redistribution for a broad sample of countries. Our results confirm the Meltzer-Richard hypothesis, indicating that the link between market inequality and redistribution is even stronger when using perceived inequality measures. We support the decisive role of the median voter, though also approving a crucial role of top incomes. Political and institutional conditions as well as cultural aspects significantly influence governments in their decisions regarding the amount of redistribution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 132

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Personal Income, Wealth, and Their Distributions ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Structure, Scope, and Performance of Government
• Subject: Redistribution ; Inequality ; Economic Policy ; Dynamic Panel Data

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gründler, Klaus ; Köllner, Sebastian
• Event: Veröffentlichung
• (who): Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy
• (where): Würzburg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/112728
• Last update: 10.03.2025, 11:45 AM CET