Munich Personal RePEc Archive

Dynamic Bargaining over Redistribution with Endogenous Distribution of Political Power

Saito, Yuta (2016): Dynamic Bargaining over Redistribution with Endogenous Distribution of Political Power.

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Abstract

This paper investigates a dynamic capital taxation (and redistribution) problem with an endogenous political power balance. It is shown that the current redistribution, which reduces the future inequality, decreases the future needs for redistribution if the bargaining power is (at least partly) endogenized.

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