Boek
This thesis, Inequality, Redistribution and Economic Growth: Theory and Evidence, blends politics with economics, micro with macro economics and theory with empirics. In various ways the concept of inequality is unraveled and the dynamic interrelationship between inequality, redistribution and growth is reexamined. In so doing it takes on a range of topics, from trust, the propensity to cooperate, corruption and taxes, to the importance of the perception of inequality. One of the important findings from the micro-perspective is that what often matters is the genesis of inequality, rather than the degree of inequality per se, e.g. whether it is perceived as being fairly or unfairly generated. Another result in this area shows that differences in income are more important for the propensity to cooperate than ethnic or racial differences.From a macro-perspective, the thesis provides a political economic model that analyses the joint determination of inequality, corruption, taxation, education and economic growth in a dynamic environment. It demonstrates how redistributive taxation is affected by the distribution of wealth and limited by various kinds of incentive costs of taxation and the lobbying activity of high-income groups. This result confirms the proposition that in countries where the economy is governed by a high degree of corruption and inequality a lower tax/GDP ratio, lower development of human capital and thus, lower economic growth is observed. «
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