This paper analyzes the interplay of growth, distribution and public policy 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. 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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Paper provided by European University Institute in its series Economics Working Papers with number
eco2000/13.
Length: 36 pages Date of creation: 2000 Date of revision: Handle: RePEc:eui:euiwps:eco2000/13
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