English, Article edition: Rat Race, Redistribution, and Growth Guido Cozzi

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Bookmark: http://trove.nla.gov.au/version/112873
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  • article
Language
  • English

Edition details

Title
  • Rat Race, Redistribution, and Growth
Author
  • Guido Cozzi
Physical Description
  • article
Notes
  • Introducing locally negatively interdependent preferences into a simple AK growth model easily explains the often observed insignificant or positive correlation between distortionary redistribution and growth rates. Positive capital income taxes and lump sum transfers are harmful for growth, but people rationally vote for them in order to reduce "rat race" overaccumulation. A "neutrality proposition" holds if the pivotal voter is the mean voter, as in a representative agent case, but it fails if the pivotal voter is poorer than the average citizens. (Copyright: Elsevier)
  • RePEc:red:issued:v:7:y:2004:i:4:p:900-915
Language
  • English
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