BARGAINING OVER TAXES AND ENTITLEMENTS IN THE ERA OF UNEQUAL GROWTH

B-Tier
Journal: International Economic Review
Year: 2023
Volume: 64
Issue: 3
Pages: 893-941

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Entitlements have become an increasing component of total government spending in the United States over the last six decades. Using a political‐economy model where parties bargain over taxes and entitlements, we argue that such dynamics can be explained by two factors: “unequal growth,” where top earners became richer while the income of the bottom 50% stagnated, and budget rules that provide bargaining power to low‐income earners through a “status quo effect.” In a model calibrated to the United States, we show that sustained bargaining power by a party representing the poor results in a rising share of entitlements consistent with the data.

Technical Details

RePEc Handle
repec:wly:iecrev:v:64:y:2023:i:3:p:893-941
Journal Field
General
Author Count
3
Added to Database
2026-01-24