One dollar, one vote

Loukas Karabarbounis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper revisits the relationship between inequality and redistribution in a panel of advanced OECD countries. Using panel data methods that hold constant a variety of determinants of redistributive spending, I find a non-monotonic relationship between pre-tax-and transfer distribution of income and redistribution. Relative to mean income, a more affluent rich and middle class are associated with less redistribution and a richer poor class is associated with more redistribution. These results are consistent with a one dollar, one vote politico-economic equilibrium: When the income of a group of citizens increases, aggregate redistributive policies tilt towards this group’s most preferred policies.

Keywords: Inequality; Distribution; Redistribution (search for similar items in EconPapers)
JEL-codes: C23 D31 H50 P16 (search for similar items in EconPapers)
Date: 2010-09-21
New Economics Papers: this item is included in nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://mpra.ub.uni-muenchen.de/25274/1/MPRA_paper_25274.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/31371/1/MPRA_paper_31371.pdf revised version (application/pdf)

Related works:
Journal Article: One Dollar, One Vote (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:25274

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