Income Inequality and Redistributive Government Spending

WPIEA0142003 Image
Price:  $15.00

Author/Editor: Erwin Tiongson, Luiz de Mello
Release Date: © January, 2003
ISBN : 978-1-45184-314-9
Stock #: WPIEA0142003
English
Stock Status: Available

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Description

The paper examines empirically the question of whether more unequal societies spend more on income redistribution than their more egalitarian counterparts. Theoretical arguments on this issue are inconclusive. The political economy literature suggests that redistributive spending is higher in unequal societies due to median voter preferences. Alternatively, it can be argued that unequal societies may spend less on redistribution because of capital market imperfections. Based on different data sources, the cross-country evidence reported in this paper suggests that more unequal societies do spend less on redistribution.




More publications in this series: Working Papers


More publications by: Erwin Tiongson ; Luiz de Mello