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Inequality, Redistribution, and Population

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Author Info
Campante, Filipe (Harvard U)
Do, Quoc-Anh

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Abstract

We document a negative relationship between population size and inequality in the cross-country data. We propose an explanation built on the existence of a size effect in the political economy of redistribution, particularly in the presence of different channels of popular request for redistribution, e.g. “institutional” channels and “revolutions”. Based on the assumption that the threat of revolution is directly related to the number of people that may attempt to revolt, the theory predicts that the stylized fact initially uncovered by the paper can be refined as follows: there is a negative relationship between population size, and its geographical concentration, and post-tax inequality in non-democracies. We subject these predictions to extensive empirical scrutiny in a cross-country context, and the data robustly confirm these patterns of inequality, population, and the interaction with democracy.

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Paper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp07-046.

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Date of creation: Oct 2007
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Handle: RePEc:ecl:harjfk:rwp07-046

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D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

References listed on IDEAS
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    Other versions:
  2. Brautigam, Deborah & Woolcock, Michael, 2001. "Small States in a Global Economy: The Role of Institutions in Managing Vulnerability and Opportunity in Small Developing Countries," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March. [Downloadable!] (restricted)
  4. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296 Elsevier. [Downloadable!] (restricted)
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  5. Andrew K. Rose, 2006. "Size Really Doesn't Matter: In Search of a National Scale Effect," NBER Working Papers 12191, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Casey B. Mulligan & Andrei Shleifer, 2005. "The Extent of the Market and the Supply of Regulation," The Quarterly Journal of Economics, MIT Press, vol. 120(4), pages 1445-1473, November. [Downloadable!] (restricted)
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  10. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July. [Downloadable!] (restricted)
  11. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June. [Downloadable!] (restricted)
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  12. Banerjee, Abhijit V & Duflo, Esther, 2003. " Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, vol. 8(3), pages 267-99, September. [Downloadable!] (restricted)
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  13. Daron Acemoglu & James A. Robinson, 2000. "Why Did The West Extend The Franchise? Democracy, Inequality, And Growth In Historical Perspective," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1167-1199, November. [Downloadable!] (restricted)
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  14. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  15. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  16. Milanovic, Branko, 2000. "The median-voter hypothesis, income inequality, and income redistribution: an empirical test with the required data," European Journal of Political Economy, Elsevier, vol. 16(3), pages 367-410, September. [Downloadable!] (restricted)
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  18. repec:cup:cbooks:9780521671422 is not listed on IDEAS
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  22. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group. [Downloadable!]
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  24. Grossman, Herschel I & Iyigun, Murat F, 1997. "Population Increase and the End of Colonialism," Economica, London School of Economics and Political Science, vol. 64(255), pages 483-93, August. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 3, Courant Research Centre PEG. [Downloadable!]
  2. Filipe Campante & Edward L. Glaeser, 2009. "Yet Another Tale of Two Cities: Buenos Aires and Chicago," NBER Working Papers 15104, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Quoc-Anh Do & Filipe R. Campante, 2008. "Keeping Dictators Honest: the Role of Population Concentration," Working Papers 01-2009, Singapore Management University, School of Economics. [Downloadable!]
  4. Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2006. "Why Does Democracy Need Education?," NBER Working Papers 12128, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Jeffrey G. Williamson, 2009. "Five Centuries of Latin American Inequality," NBER Working Papers 15305, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," NBER Working Papers 14766, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," cege – Center for European, Governance and Economic Development Research Discussion Papers 81, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany)., revised 25 May 2009. [Downloadable!]
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