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Inequality, Redistribution and Rent-Seeking

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Author Info
Francisco Rodriguez () (Department of Economics, University of Maryland)

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Abstract

We study the determination of redistributive policies in a political economy model with rent-seeking and political influence. In contrast to traditional models, a mean preserving spread can lower the effective redistributive tax rate. If rent-seeking is the main hindrance to growth, the model can account for the empirically observed inverse relationship between inequlity and growth.

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File URL: http://www.bsos.umd.edu/econ/papers/rodriguez9902.pdf
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Publisher Info
Paper provided by University of Maryland, Department of Economics in its series Electronic Working Papers with number 99-006.

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Date of creation: Jun 1999
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Handle: RePEc:umd:umdeco:99-006

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Postal: Department of Economics, University of Maryland, Tydings Hall, College Park, MD 20742
Web page: http://www.econ.umd.edu/

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Postal: Ms. Elizabeth Martinez, Department of Economics, University of Maryland, Tydings Hall, College Park, MD 20742
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References listed on IDEAS
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.:
  1. Dixit, A. & Helpman, E., 1996. "Common Agency and Coordination: General Theory and Application to Tax Policy," Papers 179, Princeton, Woodrow Wilson School - Public and International Affairs.
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  2. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August. [Downloadable!] (restricted)
  3. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  4. Benabou, R., 1996. "Unequal Societies," Working Papers 96-17, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
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  5. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  6. Alesina, Alberto & Rodrik, Dani, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 465-90, May. [Downloadable!] (restricted)
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  7. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October. [Downloadable!] (restricted)
  8. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  9. Coate, Stephen & Morris, Stephen, 1995. "On the Form of Transfers in Special Interests," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1210-35, December. [Downloadable!] (restricted)
  10. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June. [Downloadable!] (restricted)
  11. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92 National Bureau of Economic Research, Inc. [Downloadable!]
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  12. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Campante, Felipe R. & Ferreira, Francisco G.H., 2004. "Inefficient lobbying, populism and oligarchy," Policy Research Working Paper Series 3240, The World Bank. [Downloadable!]
    Other versions:
  2. Alberto Alesina & Reza Baqir & William Easterly, 1998. "Redistributive Public Employment," NBER Working Papers 6746, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Campante, Filipe, 2007. "Redistribution in a Model of Voting and Campaign Contributions," Working Paper Series rwp07-045, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  4. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Haile, Daniel T., 2005. "Wealth Distribution, Lobbying and Economic Growth: Theory and Evidence," Working Papers RP2005/21, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Claudio Agostini & Phillip Brown, 2007. "Desigualdad geográfica en Chile," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 22(1), pages 3-33, June. [Downloadable!]
  7. Gradstein, Mark, 2003. "The political economy of public spending on education, inequality, and growth," Policy Research Working Paper Series 3162, The World Bank. [Downloadable!]
  8. Erwin Tiongson & Luiz de Mello, 2003. "Income Inequality and Redistributive Government Spending," IMF Working Papers 03/14, International Monetary Fund. [Downloadable!]
  9. Ryo Arawatari & Tetsuo Ono, 2008. "A Second Chance at Success: A Political Economy Perspective," Discussion Papers in Economics and Business 08-04-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Jul 2008. [Downloadable!]
    Other versions:
  10. Joan Esteban & Debraj Ray, 2006. "Inequality, Lobbying, and Resource Allocation," American Economic Review, American Economic Association, vol. 96(1), pages 257-279, March. [Downloadable!]
  11. Carl-Johan Dalgaard & Henrik Hansen & Theo Larsen, 2003. "Income Skewness, Redistribution and Growth: A Reconciliation," EPRU Working Paper Series 03-14, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics. [Downloadable!]
  12. Rainald Borck, 2005. "Voting, Inequality, and Redistribution," Discussion Papers of DIW Berlin 503, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  13. Alberto Melo, 2003. "Colombia: Los problemas de competitividad de un país en conflicto," RES Working Papers 1002, Inter-American Development Bank, Research Department. [Downloadable!]
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