Eating the Rich vs. Feeding the Poor: Borrowing Constraints and the Reluctance to Redistribute
This paper offers an explanation why most democracies are characterized by moderate taxation of wealth although the wealth distribution is persistently skewed to the right. We model an economy in which agents have to acquire higher education to qualify for skilled work and in which capital market imperfections prevent poor individuals from making such a profitable human capital investment. If these borrowing constraints do not bind for members of the middle class, they may rationally reject redistribution although both the current and the future median of the wealth distribution are below the mean. Copyright 2003 by Kluwer Academic Publishers
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 116 (2003)
Issue (Month): 3-4 (September)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/public+finance/journal/11127/PS2|
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.:
- Roland Benabou & Efe A. Ok, 2001.
"Social Mobility and the Demand for Redistribution: The Poum Hypothesis,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 116(2), pages 447-487.
- Benabou, R. & Ok, E.A., 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," Working Papers 98-23, C.V. Starr Center for Applied Economics, New York University.
- Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
- Bénabou, Roland & Ok, Efe A, 1998. "Social Mobility and the Demand for Redistribution: the POUM Hypothesis," CEPR Discussion Papers 1955, C.E.P.R. Discussion Papers.
- Roland Benabou & Efe A. Ok, 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," NBER Working Papers 6795, National Bureau of Economic Research, Inc.
- Kiminori Matsuyama, 2000.
Review of Economic Studies,
Oxford University Press, vol. 67(4), pages 743-759.
- Friedrich Breyer & Heinrich Ursprung, 1998.
"Are the rich too rich to be expropriated?: Economic power and the feasibility of constitutional limits to redistribution,"
Springer, vol. 94(1), pages 135-156, January.
- Breyer, Friedrich & Ursprung, Heinrich W, 1998. "Are the Rich Too Rich to be Expropriated?: Economic Power and the Feasibility of Constitutional Limits to Redistribution," Public Choice, Springer, vol. 94(1-2), pages 135-156, January.
- Piketty, Thomas & Banerjee, Abhijit & Aghion, Philippe, 1997.
"Dualism and macroeconomic volatility,"
CEPREMAP Working Papers (Couverture Orange)
- Bénabou, Roland, 1996.
"Inequality and Growth,"
CEPR Discussion Papers
1450, C.E.P.R. Discussion Papers.
- Jean Hindriks, 2000.
"Is There a Demand for Income Tax Progressivity?,"
415, Queen Mary University of London, School of Economics and Finance.
- Banerjee, Abhijit V & Newman, Andrew F, 1993.
"Occupational Choice and the Process of Development,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 274-298, April.
- Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ann L. Owen & David N. Weil, 1997.
"Intergenerational Earnings Mobility, Inequality, and Growth,"
NBER Working Papers
6070, National Bureau of Economic Research, Inc.
- Owen, Ann L. & Weil, David N., 1998. "Intergenerational earnings mobility, inequality and growth," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 71-104, February.
- Oded Galor & Joseph Zeira, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Oxford University Press, vol. 60(1), pages 35-52.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:116:y:2003:i:3-4:p:351-66. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.