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Economic growth and (R-) distributive policies: a comparative dynamic analysis

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  • Rehme, Günther

Abstract

This paper analyzes the interplay of growth, distribution and public policies when the latter depend on economically important fundamentals. It is shown that not only pro-capital, but also pro-labour or income egalitarian policies lead to high growth. A wealth redistribution policy generally causes lower growth, but less so when there is technological progress. The model implies that high tax rates per se do not necessarily imply low growth. The paper argues that the long-run relationship between growth, post-tax factor incomes and public policies is more complicated in theory and especially when comparing countries as often suggested
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  • Rehme, Günther, 2000. "Economic growth and (R-) distributive policies: a comparative dynamic analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 7358, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:7358
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/7358/
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    1. Bertola, Giuseppe, 1993. "Factor Shares and Savings in Endogenous Growth," American Economic Review, American Economic Association, vol. 83(5), pages 1184-1198, December.
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    18. Rehme, Günther, 1998. "Essays on Distributive Policies and Economic Growth," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 43459, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    Cited by:

    1. Rehme, Günther, 2014. "Endogenous (re-)distributive policies and economic growth: A comparative static analysis," Economic Modelling, Elsevier, vol. 40(C), pages 355-366.
    2. Rehme, Gunther, 2006. "Redistribution and economic growth in integrated economies," Journal of Macroeconomics, Elsevier, vol. 28(2), pages 392-408, June.
    3. Günther Rehme, 2007. "Economic Growth and (Re-)Distributive Policies in a Non-cooperative World," Journal of Economics, Springer, vol. 91(1), pages 1-40, May.
    4. Toshiki Tamai, 2015. "Redistributive taxation, wealth distribution, and economic growth," Journal of Economics, Springer, vol. 115(2), pages 133-152, June.

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    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • D3 - Microeconomics - - Distribution
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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