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http://hdl.handle.net/10419/23521
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| Title: | | Inequality, Politics, and Economic Growth : Three Critical Questions on Politico-Economic Models of Growth and Distribution  |
| Authors: | | Josten, Stefan Dietrich Truger, Achim |
| Issue Date: | | 2003 |
| Series/Report no.: | | Diskussionspapier / Helmut-Schmidt-Universität Hamburg, Fächergruppe Volkswirtschaftslehre 3 |
| Abstract: | | This paper questions the three standard propositions used by politico-economic models of 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 basic models. The politico-economic 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. |
| Subjects: | | Political Economy Redistribution Inequality Economic growth |
| JEL: | | D3 H2 O4 D72 |
| Persistent Identifier of the first edition: | | urn:nbn:de:gbv:705-opus-1316 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionspapiere, Fächergruppe VWL, Helmut-Schmidt-Universität
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