Does More Inequality Lead to More Redistribution? Evidence from Developed and Developing Democracies

Houle, Christian

doi:10.2139/ssrn.2620921

SSRN Journal

2015

DOI: 10.2139/ssrn.2620921

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Does More Inequality Lead to More Redistribution? Evidence from Developed and Developing Democracies

Christian Houle

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Cited by 2 publications

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“… 24. Some recent research has produced evidence consistent with the Meltzer and Richard (1981) model, by differentiating between pre- and post-tax income (Houle, 2015; Ostry, Berg, & Tsangarides, 2014). …”

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Financial Liberalization: Stable Autocracies and Constrained Democracies

Pond

2017

Comparative Political Studies

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Why do autocratic rulers liberalize financial markets? This article shows how autocrats use financial liberalization for two distinct purposes. First, autocrats may use liberalization to bolster the economy, making revolution less attractive to the political opposition and stabilizing the autocracy. Second, when stabilization of the autocracy is too costly, autocrats may use liberalization to make assets more mobile. Mobility provides elite asset owners with external investment options, which limit redistribution. When redistribution is the main fear associated with democratization, the mobility associated with liberalization makes direct control of political institutions through dictatorship unnecessary. Thus, autocrats use liberalization to stimulate the economy and stabilize their rule or to reduce redistribution in anticipation of democratization. Suharto’s policies in Indonesia and Pinochet’s policies in Chile illustrate these two objectives of financial liberalization.

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Financial Liberalization: Stable Autocracies and Constrained Democracies

Pond

2017

Comparative Political Studies

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Rule of Informal Institutions in Democracy: Implications for Regional Disparity in an Indian State

Gual,

Das

2024

Millennial Asia

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This article attempts to understand and theorize the issue of persistent regional disparity within democratic structures using an institutional perspective. Institutional economists widely acknowledge the role of democratic institutions in improving redistribution and reducing inequalities. However, persistent regional disparity within democratic nations has become a cause of concern for both developed and developing nations. There is hardly any study that either attempts to develop a separate institutional framework to explain regional variation or to examine the applicability of these frameworks in the regional context. Our article is an attempt to fill this gap. In this article, we have taken the case of Odisha, a low-income state within the largest democracy in the world, India, and tried to theorize its wide and persistent regional disparities. The novelty of this article is conceptualizing the interactions between formal and informal institutions and drawing implications of their interactions for regional disparity and economic growth.

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Does More Inequality Lead to More Redistribution? Evidence from Developed and Developing Democracies

Cited by 2 publications

References 69 publications

Financial Liberalization: Stable Autocracies and Constrained Democracies

Financial Liberalization: Stable Autocracies and Constrained Democracies

Rule of Informal Institutions in Democracy: Implications for Regional Disparity in an Indian State

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