Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101717
Authors: 
Grüner, Hans Peter
Year of Publication: 
1995
Series/Report no.: 
Diskussionsbeiträge: Serie II, Sonderforschungsbereich 178 "Internationalisierung der Wirtschaft", Universität Konstanz 272
Abstract: 
Traditional political economy models of taxation fail to explain why there is so little redistribution of wealth despite significant wealth inequalites. This is for two reasons: (1) The median voter approach cannot deal with a multidimensional policy-space and (2) wealth taxation affects well-organized and homogenous interest groups so that lobbying affects policy outcomes. In this paper the interaction of factor price bargaining and delegated tax-lobbying is studied. Two agents engage in lobbying: managers of large firms and trade union leaders. Low wealth taxation is the natural consequence of income maxmimization on the side of interest group leaders if (1) managers are in a position to appropriate part of the firms' revenues for themselves and (2) union members cannot monitor the lobbying activities of union leaders.
Subjects: 
Lobbying
taxation of wealth
wage bargaining
JEL: 
D31
D72
Document Type: 
Working Paper

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