Wealth Distribution, Lobbying and Economic Growth: Theory and Evidence

Daniel T. Haile

No RP2005-21, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper presents a model allowing one to analyze the joint determination of inequality, taxes, human capital and growth. We consider the political economy of redistribution between three income groups in a dynamic economy. The paper seeks to explain the effect of corruptibility (exemptions) and lobby group size on policy outcomes. Theoretically, this paper provides a linkage between lobbying activities, wealth distribution and growth.

Keywords: Econometric models (Economic development); Education; Income distribution; Corruption; Tax evasion (search for similar items in EconPapers)
Date: 2005
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