Author: Chetan GhatePublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Transitional Dynamics in a Growth Model with Distributive Politics
Author: Chetan GhateDistributive Politics and Economic Growth
Author: Alberto AlesinaPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 68
Book Description
This paper studies the relationship between political conflict and economic growth in a simple model of endogenous growth with distributive conflicts. We study both the case of two "classes" (workers and capitalists) and the case of a continuum distribution of agents, characterized by different capital/labor shares. We establish several results concerning the relationship between the political influence of the two groups and the level of taxation, public investment, redistribution of income and growth. For example, it is shown that policies which maximize growth are optimal only for a government that cares only about the "capitalists." Also, we show that in a democracy (where the "median voter theorem' applies) the rate of taxation is higher and the rate of growth lower, the more unequal is the distribution of wealth We present empirical results consistent with these implications of the model.
Endogenous Distribution and Equilibrium Growth
Author: Chetan GhatePublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Does distributive conflict diminish during the course of economic development? This article outlines a model in which distribution, the tax rate and growth evolve endogenously over time. When voting occurs over a tax on capital, we show that the growth rate is maximized at the political equilibrium in the long run. When voting occurs over a general income tax, we show that the growth rate is maximized at the political equilibrium in both the short and long run. These results suggest that the transitional dynamics of growth models with redistributive politics lead to growth-maximizing outcomes, as distributive conflict diminishes in the course of development. This implies that the democratic process leads to greater consensus over policy choices, with a perfect convergence of interest across individuals with respect to the tax rate.
Transitional Dynamics in a Growth Model with Government Spending, Technological Progress and Population Change
Author: Alberto BucciPublisher:
ISBN:
Category :
Languages : en
Pages : 26
Book Description
This paper extends public spending-based growth theory along three directions: we assume that exogenous and constant technological progress does exist and that both population change and the ratio of government expenditure to income follow a logistic trajectory. By focusing on the choices of a benevolent social planner we find that, if the inverse of the intertemporal elasticity of substitution in consumption is sufficiently high, the ratio of consumption to private physical capital converges towards zero when time goes to infinity. Through two examples we see that, depending on the form of the underlying aggregate production function and on whether, for given production function, technological progress equals zero or a positive constant, our model may or may not yield an asymptotic balanced growth path (ABGP) equilibrium. When there is no exogenous technological progress, an equilibrium where population size, the ratio of government spending to total income and the ratio of consumption to private physical capital are all constant does exist and the equilibrium is a saddle point. In case of positive technological progress numerical simulations show that the model still exhibits an ABGP equilibrium.
Comparative Political Economy
Author: Jan-Erik LanePublisher: Burns & Oates
ISBN:
Category : Business & Economics
Languages : en
Pages : 310
Book Description
Distributive Politics and Economic Growth
Author: Ines LindnerPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We generalize the result of Alesina and Rodrik (1994) by showing that their static solution is also a time consistent Stackelberg solution of a differential game between the government and the median voter.
Modern Growth Theory
Author: Dipankar DasguptaPublisher: Oxford University Press
ISBN: 0199088349
Category : Business & Economics
Languages : en
Pages : 252
Book Description
This book deals with Growth Theory, an important subject taught as a part of economic theory. Amongst other topics, it introduces the literature on growth and inequality as well as a major critique of growth economics by Charles Jones. These issues remained unaddressed in an earlier volume by the author, Growth Theory: Solow and His Modern Exponents (OUP 2005). Developed on the earlier work, the present volume focuses on: long run growth growth and infrastructure taxation policies for growth human capital formation a unified theoretical framework to help students travel from the world of old growth theory to modern growth theory intuitive as well as rigorous development of optimal control theory using undergraduate mathematical tools analysis of India's long term growth experience. For an interactive platform on updates and queries on the book and clarifications by the author, please visit the Discussion Forum: Modern Growth Theory, OUP, 2010 at this URL http:--economicsteaching.wordpress.com-2010-10-28-modern-growth-theory-
Transitional Dynamics in an R&D-Based Growth Model with Imitation
Author: Fidel Perez-SebastianPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Employing cross-country data, this paper evaluates the transitional dynamics predictions of a non-scale growth model of endogenous technology innovation and imitation. We show that, unlike the neoclassical growth framework, the transitional dynamics of the R&D-based growth model can account for growth 'miracles'. The additional convergence power provided by technology imitation allows the model to replicate rapid growth experiences for plausible real interest rates, and reasonable consumption and investment shares. Furthermore, our results can reconcile the big contribution of input factor accumulation to economic growth found by Young (1994. European Economic Review 38, 964--973; 1995. Quartely Journal of Economics 110, 641--680) with the importance of technology transfer.
The Dynamics of Distributive Politics
Author: Capital, Time and Transitional Dynamics
Author: Harald HagemannPublisher: Routledge
ISBN: 1134158033
Category : Business & Economics
Languages : en
Pages : 287
Book Description
This innovative volume presents a comprehensive appraisal of John Hicks' Capital and Time (1973) thirty years on from its original publication. Contributors include Walter Eltis, Heinz Kurz and Maghnad Desai.