Full Description
Do more equal economies grow faster? Which role does the public sector play for the relationship between inequality and growth? What is the impact of technological changes and capital accumulation on the distribution of wealth, income, and wages? How do social comparisons among individuals affect redistributive taxation, the wage structure, and the growth rate of an economy? To answer these questions is the goal ofthis book. I became interested in the issues ofdistribution and growth during my study of economics at the University of Bonn and as an exchange student at the UC Berkeley. Most notably, I was stimulated by my academic teachers George Akerlof, Paul Romer and Axel Weber. This book was written during my stay at the department ofeconomics at the University of Regensburg, in the years 1997-2000. It is my doctoral dissertation in economics (University ofRegensburg; day ofdisputation was th July 24 2000). I am very grateful to my supervisors Wolfgang Buchholz and Josef Falkinger for their continuous support and very helpful suggestions on many drafts of parts of this book.
I am also indebted to my colleagues Hartmut Egger and Martin Summer for illuminating discussions as well as to participants of many conferences and research seminars where parts of this book have been presented. Last but not least, I would like to thank my partner Ronke Osikominu for her moral support and my parents Gerda and Eberhard for more than Ican say.
Contents
1 Where do we stand? A survey.- 1.1 Growth and the functional income distribution: the classical and Marxian perspective.- 1.2 Distributional aspects of Keynesian and neoclassical growth theory.- 1.3 The Kuznets hypothesis and some cross-section data.- 1.4 How inequality and redistribution affects growth.- 1.5 How technological change affects the income distribution.- 2 Status concerns, inequality, and growth.- 2.1 Motivation.- 2.2 The model.- 2.3 Equilibrium growth.- 2.4 Preferred growth rates and redistribution.- 2.5 Discussion.- 2.6 Summary.- Appendix to chapter 2.- 3 Inequality, voting over public consumption, and growth.- 3.1 Motivation.- 3.2 Voting over public expenditure: a simple model.- 3.3 Public expenditure in a growth model.- 3.4 Equilibrium growth and public consumption.- 3.5 Individual demand for public consumption and growth.- 3.6 Voting equilibrium in the growth model.- 3.7 Discussion.- 3.8 Some empirical evidence.- 3.9 Summary.- Appendix to chapter 3.- 4 Skilled labor reallocation, wage inequality, and growth.- 4.1 Motivation.- 4.2 The model.- 4.3 Perfect foresight growth equilibrium.- 4.4 Comparative static results.- 4.5 Discussion.- 4.6 Summary.- Appendix to chapter 4.- 5 Where do we go from here? Conclusions and open questions.- List of figures and tables.- References.
