The Dynamics of Exclusion and Fiscal Conservatism

Gilles Saint-Paul

Review of Economic Dynamics, 2001, vol. 4, issue 2, 275-302

Abstract: This paper studies the impact of income inequality on fiscal conservatism when an increase in inequality essentially affects the bottom of the income distribution. It is argued that, contrary to what is generally assumed in the economic literature, inequality will then be associated will less, rather than more, redistributive taxation. Furthermore, if the poor are liquidity constrained then the positive association between inequality and fiscal conservatism will increase the persistence in the dynamics of income distribution and possibly lead to multiple steady states. (Copyright: Elsevier)

Keywords: political economy; income distribution; human capital; poverty; exclusion; inequality; path dependence (search for similar items in EconPapers)
JEL-codes: E62 H2 H3 J24 J62 O15 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (26)

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Related works:
Working Paper: The Dynamics of Exclusion and Fiscal Conservatism (1994)
Working Paper: The Dynamics of Exclusion and Fiscal Conservatism (1994)
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DOI: 10.1006/redy.2000.0113

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