Political Geography and Income Inequalities
AbstractThis paper displays an analysis of geopolitical organizations within the framework proposed by Alesina and Spolaore (1997), where heterogeneity concerns the geographical space. This model adds heterogeneity in terms of income. Main results of the paper: (i) in the normative equilibrium (social planner solution) there is an inverse relationship between income inequality and public good provision within each jurisdiction; (ii) in the positive equilibrium (equilibrium geography) we find that in some cases there are no equilibria depending upon income inequality.
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Bibliographic InfoPaper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 152.
Length: 23 pages
Date of creation: Feb 2009
Date of revision: Feb 2009
Jurisdiction Size; Public Spending; Income Distribution; Tax Distortion;
Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- D6 - Microeconomics - - Welfare Economics
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H4 - Public Economics - - Publicly Provided Goods
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