@techreport{Josten2003political,
abstract = {This paper reconsiders the political economy approach to growth and distribution according to which (1) rising inequality induces more government redistribution; (2) more government redistribution is financed by higher distortionary taxation; and (3) higher distortionary taxes reduce economic growth. We present a variety of theoretical arguments demonstrating that all three propositions may be overturned by simply changing an assumption in a plausible way or adding a relevant real-world element to the basal models. The political economy models of growth and distribution, as well as the specific inequality-growth transmission channel they propose, must therefore be assessed as overly simplistic and inadequate with respect to the issues studied.},
address = {D\"{u}sseldorf},
author = {Stefan Dietrich Josten and Achim Truger},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D72; D3; H2; O4; 330; Political Economy; Redistribution; Inequality; Economic growth; Wirtschaftswachstum; Einkommensverteilung; Public Choice; Einkommensumverteilung; Kritik; Theorie},
language = {eng},
number = {111},
publisher = {WSI},
title = {The political economy of growth and distribution: A theoretical critique},
type = {WSI-Diskussionspapier},
url = {http://hdl.handle.net/10419/50470},
year = {2003}
}
