Endogenous distribution, politics and the growth-equity tradeoff
AbstractIn comparison to the standard literature on inequality and growth which assumes the former to be exogenous, we formulate a model in which inequality and growth are both endogenous. Furthermore, long-run distribution, at least locally, is shown to be independent of the initial distribution of factor ownership. It is shown that exogenous policy changes that are primarily targeted towards growth and foster less inequality do enhance growth. But those that are primarily redistributive and imply more equal distribution reduce growth. This is consistent with recent empirical work which shows that inequality and growth may be positively related.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 03-06.
Length: 35 pages
Date of creation: Sep 2003
Date of revision:
Median Voter; Endogenous Growth; Wealth Distribution; Distributive Conflict; Redistributive Policy;
Other versions of this item:
- Das Satya P & Ghate Chetan, 2004. "Endogenous Distribution, Politics, and the Growth-Equity Tradeoff," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-32, July.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-02 (All new papers)
- NEP-DEV-2004-01-08 (Development)
- NEP-MAC-2004-01-08 (Macroeconomics)
- NEP-POL-2004-06-02 (Positive Political Economics)
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.:
- Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
- Oded Galor & Joseph Zeira, 2013.
"Income Distribution and Macroeconomics,"
2013-12, Brown University, Department of Economics.
- Kiminori Matsuyama, 1998.
1238, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jones, Larry E & Manuelli, Rodolfo E, 1990. "A Convex Model of Equilibrium Growth: Theory and Policy Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1008-38, October.
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
- Oded Galor & Omer Moav, 2000.
"Das Human Kapital,"
2000-17, Brown University, Department of Economics.
- Chetan Ghate, 2005.
"Transitional dynamics in a growth model with distributive politics,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
05-07, Indian Statistical Institute, New Delhi, India.
- Chetan Ghate, 2006. "Transitional Dynamics in a Growth Model with Distributive Politics," Papers on Entrepreneurship, Growth and Public Policy 2006-22, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Chetan Ghate, 2005. "Transitional Dynamics in a Growth Model with Distributive Politics," Discussion Papers of DIW Berlin 514, DIW Berlin, German Institute for Economic Research.
- Chakrabarty Debajyoti & Chanda Areendam & Ghate Chetan, 2006.
"Education, Growth, and Redistribution in the Presence of Capital Flight,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 6(2), pages 1-41, November.
- Areendam Chanda & Debajyoti Chakrabarty & Chetan Ghate, . "Education, Growth, and Redistribution in the Presence of Capital Flight," Departmental Working Papers 2006-10, Department of Economics, Louisiana State University.
- Debajyoti Chakrabarty, 2006. "Education, Growth, and Redistribution in the Presence of Capital Flight," Papers on Entrepreneurship, Growth and Public Policy 2006-21, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Bertocchi, Graziella, 2007.
"The Vanishing Bequest Tax: The Comparative Evolution of Bequest Taxation in Historical Perspective,"
IZA Discussion Papers
2578, Institute for the Study of Labor (IZA).
- Graziella Bertocchi, 2011. "The Vanishing Bequest Tax: The Comparative Evolution Of Bequest Taxation In Historical Perspective," Economics and Politics, Wiley Blackwell, vol. 23(1), pages 107-131, 03.
- Bertocchi, Graziella, 2007. "The Vanishing Bequest Tax: The Comparative Evolution of Bequest Taxation in Historical Perspective," CEPR Discussion Papers 6115, C.E.P.R. Discussion Papers.
- Graziella Bertocchi, 2007. "The vanishing bequest tax. The Comparative Evolution of Bequest Taxation in Historical Perspective," Center for Economic Research (RECent) 005, University of Modena and Reggio E., Dept. of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar).
If references are entirely missing, you can add them using this form.