Rat Race, Redistribution, and Growth

B-Tier
Journal: Review of Economic Dynamics
Year: 2004
Volume: 7
Issue: 4
Pages: 900-915

Score contribution per author:

2.018 = (α=2.02 / 1 authors) × 1.0x B-tier

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

Abstract

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)

Technical Details

RePEc Handle
repec:red:issued:v:7:y:2004:i:4:p:900-915
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25