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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

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 growt... view more

"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)... view less

Keywords
redistribution; income; economic growth; taxes; political economy; distribution; inequality; economic theory

Classification
Political Economy
Public Finance

Method
theory formation; basic research

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 providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne


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© 2007 - 2018 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2017, DuraSpace. All rights reserved.