Public policies typically involve a redistributive feature. The level and nature of redistribution may be seen as the result of a political economy equilibrium. In the political economy process that determines redistributive public policies, income inequality plays a crucial role. In particular, through political economy mechanisms, such as formations of voting coalitions, the level of income inequality may affect the design of redistributive public policies. In this survey, we analyze how income inequality affects the design and the size of PAYG pension systems, pure redistributive transfers and public education programmes. These policies may have in turn dynamic implications for inequality and growth. Public policies are strictly inter-related, especially when their redistributive element is analyzed. To deal with this issue, the multidimensional political economy approach jointly analyzes the determination of more than one policy, and/or more than one feature of a specific policy at the same time. Technical problems are solved using probabilistic voting or issue-by-issue voting (structure induced equilibrium).

"Income inequality and redistributive public policies: A survey of the multidimensional political economy approach" in Research Project STREP "Inequality: effects, mechanisms, policies"

PROFETA, PAOLA ANTONIA
2008

Abstract

Public policies typically involve a redistributive feature. The level and nature of redistribution may be seen as the result of a political economy equilibrium. In the political economy process that determines redistributive public policies, income inequality plays a crucial role. In particular, through political economy mechanisms, such as formations of voting coalitions, the level of income inequality may affect the design of redistributive public policies. In this survey, we analyze how income inequality affects the design and the size of PAYG pension systems, pure redistributive transfers and public education programmes. These policies may have in turn dynamic implications for inequality and growth. Public policies are strictly inter-related, especially when their redistributive element is analyzed. To deal with this issue, the multidimensional political economy approach jointly analyzes the determination of more than one policy, and/or more than one feature of a specific policy at the same time. Technical problems are solved using probabilistic voting or issue-by-issue voting (structure induced equilibrium).
2008
Profeta, PAOLA ANTONIA
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/401391
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