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Does inequality affect redistribution? The political economy aspect of the redistribution puzzle
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Resumo(s)
The relationship between income inequality and the level of redistribution seems to be clear
only at first glance. Despite the positive relation proposed by theory, empirical results remain
ambiguous. The work project “Does Inequality Affect Redistribution? The Political Economy
Aspect of the Redistribution Puzzle” seeks to investigate the channels that affect the
relationship between inequality and redistribution. Using a TSCS data set on absolute
redistribution in 64 countries starting in 1975, country fixed effects regressions yield that
evidence for a positive relationship is weak. Furthermore, dependence on political-economy
factors seems to be of importance and should be subject to further investigations.
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Political economy Redistribution Income inequality