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The political economy of growth and distribution : a theoretical critique

Zur neuen Politischen Ökonomie von Wachstum und Verteilung: eine theoretische Kritik
[working paper]

Josten, Stefan Dietrich; Truger, Achim

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Further Details
Corporate Editor Wirtschafts- und Sozialwissenschaftliches Institut in der Hans-Böckler-Stiftung
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." (author's abstract)
Keywords political economy; economic growth; distribution; income; taxes; inequality; economic theory; redistribution
Classification Political Economy; Public Finance
Method basic research; theory formation
Free Keywords political economy; redistribution; inequality; economic growth
Document language English
Publication Year 2003
City Düsseldorf
Page/Pages 27 p.
Series WSI-Diskussionspapier, 111
Licence Deposit Licence - No Redistribution, No Modifications
data provider This metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne