Distributive Politics and Economic Growth

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ID: 289593
1994
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Abstract
We study the relationship between politics and economic growth in a simple model of endogenous growth with distributive conflict among agents endowed with varying capital/labor shares. We establish several results regarding the factor ownership of the median individual and the level of taxation, redistribution, and growth. Policies that maximize growth are optimal only for a government that cares solely about pure “capitalists.” The greater the inequality of wealth and income, the higher the rate of taxation, and the lower growth. We present empirical results that show that inequality in land and income ownership is negatively correlated with subsequent economic growth.
Reference Key
openalex_W3122947389 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Alberto Alesina, D. Rodrik
Journal the quarterly journal of economics
Year 1994
DOI
10.2307/2118470
URL
https://doi.org/10.2307/2118470
Keywords Keywords not found

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