Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28127
Authors: 
Clemens, Christiane
Heinemann, Maik
Year of Publication: 
2005
Series/Report no.: 
University of Lüneburg working paper series in economics 5
Abstract: 
This paper discusses the emergence of endogenous redistributive cycles in a stochastic growth model with incomplete asset markets and heterogeneous agents, where agents vote on the degree of progressivity in the tax.transfer.scheme. The model draws from Bénabou (1996) and ties the bias in the distribution of political power to the degree of inequality in the society, thereby triggering redistributive cycles which then give rise to a nonlinear, cyclical pattern of savings rates, growth and inequality over time.
JEL: 
D31
E62
O41
P16
Document Type: 
Working Paper

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