Inequality and redistribution revisited

Woojin Lee, John E. Roemer

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

As inequality rises taxation can be less efficient in the sense that a given tax rate produces a smaller tax base. If this tax base effect outweighs the conventional political effect, then increasing inequality can induce less public spending (or redistribution), contrarily to Alesina and Rodrik and Persson and Tabellini.

Original languageEnglish
Pages (from-to)339-346
Number of pages8
JournalEconomics Letters
Volume65
Issue number3
Publication statusPublished - 1999 Dec 1
Externally publishedYes

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Keywords

  • Inequality
  • Political economy
  • Political effect
  • Tax base effect

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Lee, W., & Roemer, J. E. (1999). Inequality and redistribution revisited. Economics Letters, 65(3), 339-346.