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  • The distributive effects of institutional quality when government stability is endogenous

    Author(s)
    Carmignani, Fabrizio
    Griffith University Author(s)
    Carmignani, Fabrizio
    Year published
    2009
    Metadata
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    Abstract
    Redistribution is the strategic response of the incumbent to a decrease in its survival probability resulting from weak institutions and growing income inequalities. The purpose of the paper is to test empirically the validity of this conjecture. System and single equation estimations provide a consistent picture: (i) bad institutions increase income inequality, while more redistribution reduces income inequality; (ii) greater inequality increases the probability of government termination; and (iii) a higher probability of termination increases the extent of redistribution. Overall, there is strong evidence in support of the ...
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    Redistribution is the strategic response of the incumbent to a decrease in its survival probability resulting from weak institutions and growing income inequalities. The purpose of the paper is to test empirically the validity of this conjecture. System and single equation estimations provide a consistent picture: (i) bad institutions increase income inequality, while more redistribution reduces income inequality; (ii) greater inequality increases the probability of government termination; and (iii) a higher probability of termination increases the extent of redistribution. Overall, there is strong evidence in support of the proposed conjecture.
    View less >
    Journal Title
    European Journal of Political Economy
    Volume
    25
    Issue
    4
    DOI
    https://doi.org/10.1016/j.ejpoleco.2009.03.003
    Subject
    Economic theory
    Applied economics
    Macroeconomics (incl. monetary and fiscal theory)
    Public economics - public choice
    Panel data analysis
    Political science
    Development studies
    Publication URI
    http://hdl.handle.net/10072/48312
    Collection
    • Journal articles

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