Distributional conflict, political cycles and growth

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

This paper discusses the emergence of endogenous redistributive cycles in a stochastic growth model with incomplete asset markets and heterogeneous agents who vote on the degree of progressivity in the tax-transfer scheme. The model draws from Bénabou (in B. S. Bernanke and J. J. Rotemberg (eds), NBER Macroeconomics Annual, Vol. 11, Cambridge, MA, MIT Press, pp. 11-74) and ties the bias in the distribution of political power to the degree of inequality in the society, thereby triggering redistributive cycles which then give rise to a nonlinear, cyclical pattern of savings rates, growth and inequality over time.

OriginalspracheEnglisch
ZeitschriftThe Manchester School
Jahrgang73
Ausgabenummer4
Seiten (von - bis)500-521
Anzahl der Seiten22
ISSN1463-6786
DOIs
PublikationsstatusErschienen - 01.07.2005

DOI