Paper · 1994 · advanced level
Distributive Politics and Economic Growth
Alberto Alesina, Dani Rodrik
- Venue
- Quarterly Journal of Economics, 109(2), 465–490
- Link
- publisher / source page
Citation count not independently verified
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Contested finding
Later cross-country work (e.g., Forbes 2000, AER) found the opposite sign in short panels; the inequality-growth relationship's sign is contested and depends heavily on specification, time horizon, and data.
In plain language
Models how conflict between capital-owners and workers over redistribution shapes tax policy, which in turn shapes investment and growth; finds inequality predicts slower subsequent growth across countries.
Technical summary
Endogenous-growth model with distributive conflict determining redistributive taxation; cross-country evidence that land and income inequality are negatively associated with subsequent growth.
Key takeaways
- Launched, with Persson & Tabellini (1994), the 'political economy of growth' literature bridging economics and political science.
Themes
Related works
- Is Inequality Harmful for Growth? — Torsten Persson & Guido Tabellini, 1994