Dynamics of Income Inequality under Social Identity Hypothesis
Arayah Preechametta (arayah@econ.tu.ac.th)
Additional contact information
Arayah Preechametta: Faculty of Economics, Thammasat University, Bangkok, 10200, Thailand.
Applied Economics Journal, 2015, vol. 22, issue 2, 1-24
Abstract:
The predicted long-term inequality, led by Kuznets (1955), can be eventually reduced because of higher level of economic development. However, Piketty (2014) pointed out that more inequality is likely to occur instead. He also argued that share of income and wealth of the rich in the top income levels tend to be higher than a generation ago. This study, using the idea of social identity and redistribution introduced by Shayo (2009) and Lindqvist and Ostling (2013), investigates the dynamics of inequality in Thailand for three different periods: the early Rattanakosin prior to Bowring Treaty, the period during the reign of King Rama the fifth, and the current period. The results indicated that dynamics of income inequality in Thailand is consistent with the modified Kuznets curve. Multiple equilibria are also possible as suggested by Acemoglu and Robinson (2000, 2002), and some redistributive equilibria are sub-optimal.
Keywords: Kuznets curve; social identity; redistribution; multiple equilibria. median voters. (search for similar items in EconPapers)
JEL-codes: D31 D63 H2 Q15 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://journal.eco.ku.ac.th/upload/document/thai/20160230091530.pdf
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:aej:apecjn:v:22:y:2015:i:2:p:1-24
Access Statistics for this article
Applied Economics Journal is currently edited by Kampanat Pensupar
More articles in Applied Economics Journal from Kasetsart University, Faculty of Economics, Center for Applied Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Chatrat Hemmawat (aej.journal@gmail.com).