TY - JOUR

T1 - Distributional conflict, political cycles and growth

AU - Clemens, Christiane

AU - Heinemann, Maik

PY - 2005/7/1

Y1 - 2005/7/1

N2 - 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.

AB - 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.

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=22544447419&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/ec6ac102-24aa-39c8-acc4-736349de9d45/

U2 - 10.1111/j.1467-9957.2005.00456.x

DO - 10.1111/j.1467-9957.2005.00456.x

M3 - Journal articles

VL - 73

SP - 500

EP - 521

JO - The Manchester School

JF - The Manchester School

SN - 1463-6786

IS - 4

ER -