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Redistributive Taxation, Democracy and Growth

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Author Info
Dessy, Sylvain ()

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Abstract

The 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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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9820.pdf
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Publisher Info
Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9820.

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Date of creation: 1998
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Handle: RePEc:lvl:laeccr:9820

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Related research
Keywords: Democracy; Education; Growth; Human capital; Income distribution;

Find related papers by JEL classification:
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

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