search query: @indexterm POLITICAL ECONOMY / total: 438
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| Author: | Grüner, H.P. Schils, R. |
| Title: | The political economy of wealth and interest |
| Journal: | Economic Journal
2007 : OCT, VOL. 117:523, p. 1403-1422 |
| Index terms: | political economy interest rates income distribution wealth |
| Freeterms: | ownership |
| Language: | eng |
| Abstract: | This paper deals with the relationship btw. wealth (here as: w.) redistribution (as: redstr.) and the allocation of firm-ownership. The economy's w. distribution affects the equilibrium interest rate (as: i-rt.) and the allocation of entrepreneurial rents when w. determines agents' ability to borrow, leading to an unconventional voting behaviour of the middle class (here as: m-cl.): the political preferences of m-cl. and upper class voters coincide when redstr. only has an adverse i-rt. effect. M-cl. voters vote with the lower class if redstr. gives access to entrepreneurial rents. Greater inequality amplifies the i-rt. effect and may lead to less redstr. Technology may strongly affect political outcomes. |
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