Rehme, Günther (2006)
Economic growth and (re-)distributive policies in a non-cooperative world.
Report, Bibliographie
Kurzbeschreibung (Abstract)
Many models show that redistribution is bad for growth. This paper argues that in a non-cooperative world optimizing, redistributing (’left-wing’) governments mimic non-redistributing (’right-wing’) policies for fear of capital loss if capital markets become highly integrated and the countries are technologically similar. ’Left-right’ competition leads to more redistribution and lower GDP growth than ’left-left’ competition. Efficiency differences allow for higher GDP growth and more redistribution than one’s opponent. Irrespective of efficiency differences, however, ’left-wing’ governments have higher GDP growth when competing with other ’left-wing’ governments. The results may explain why one observes a positive correlation between redistribution and growth across countries, and why capital inflows and current account deficits may be good for relatively high growth.
| Typ des Eintrags: | Report |
|---|---|
| Erschienen: | 2006 |
| Autor(en): | Rehme, Günther |
| Art des Eintrags: | Bibliographie |
| Titel: | Economic growth and (re-)distributive policies in a non-cooperative world |
| Sprache: | Englisch |
| Publikationsjahr: | 1 Juli 2006 |
| Ort: | Darmstadt |
| Reihe: | Darmstadt Discussion Papers in Economics |
| Band einer Reihe: | 175 |
| URL / URN: | http://econstor.eu/bitstream/10419/32095/1/516794493.PDF |
| Kurzbeschreibung (Abstract): | Many models show that redistribution is bad for growth. This paper argues that in a non-cooperative world optimizing, redistributing (’left-wing’) governments mimic non-redistributing (’right-wing’) policies for fear of capital loss if capital markets become highly integrated and the countries are technologically similar. ’Left-right’ competition leads to more redistribution and lower GDP growth than ’left-left’ competition. Efficiency differences allow for higher GDP growth and more redistribution than one’s opponent. Irrespective of efficiency differences, however, ’left-wing’ governments have higher GDP growth when competing with other ’left-wing’ governments. The results may explain why one observes a positive correlation between redistribution and growth across countries, and why capital inflows and current account deficits may be good for relatively high growth. |
| Freie Schlagworte: | Growth, Distribution, Tax Competition, Capital Mobility |
| Zusätzliche Informationen: | JEL classification: O4, H21, D33, C72, F21 |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Wirtschaftstheorie |
| Hinterlegungsdatum: | 20 Nov 2008 08:22 |
| Letzte Änderung: | 03 Jun 2018 21:22 |
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