Redistributive Taxation, Democracy and Growth
AbstractThe recent theorical literature on the political economy of growth displays contrasting findings on the nature of the political link between income inequality and growth. In this paper, we explain this contrast and argue that in a democracy, when redistribution is in the form of government expenditure on education, and government expenditure does not crowd out private expenditures by altruistic agents, a negative relation between inequality and growth emerges in equilibrium.
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Bibliographic InfoPaper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9820.
Date of creation: 1998
Date of revision:
Democracy; Education; Growth; Human capital; Income distribution;
Other versions of this item:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-09-28 (All new papers)
- NEP-CDM-1998-09-28 (Collective Decision-Making)
- NEP-PUB-1998-09-28 (Public Finance)
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