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Why is there so little redistribution?

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  • Jo Thori Lind

Abstract

In democratic societies with skewed income distributions, simple political economy models predict that the poor will form a coalition to implement high taxes. I review this basic theory and some of its extensions. Then I discuss how we can test the model, and some common pitfalls, before I review the empirical findings. Generally, the empirical support for the theory is weak. I end with a review of selected parts of the literature that tries to explain this lack of empirical support.

Suggested Citation

  • Jo Thori Lind, 2005. "Why is there so little redistribution?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 111-125.
    • Handle: RePEc:noj:journl:v:31:y:2005:p:111-125
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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