Power, Distributive Conflicts, and Multiple Growth Paths

Gilles Saint Paul; Thierry Verdier

doi:10.1023/A:1009729117637

Power, Distributive Conflicts, and Multiple Growth Paths

Gilles Saint Paul, Thierry Verdier

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

This article shows that multiple growth paths may occur in a politico-economic model of endogenous growth. This multiplicity is characterized by the coexistence of the low-tax, low-capital-flight equilibrium and a high-tax, high-capital-flight equilibrium. The likelihood of multiplicity is crucially related to the structure of power in society - namely, it is necessary that the politically decisive agents have a greater access to international capital markets than the average in the economy.

Original language	English (US)
Pages (from-to)	155-168
Number of pages	14
Journal	Journal of Economic Growth
Volume	2
Issue number	2
DOIs	https://doi.org/10.1023/A:1009729117637
State	Published - Jul 1997

Keywords

Capital flight
Growth
Multiple equilibria
Redistribution
Taxation

ASJC Scopus subject areas

Economics and Econometrics

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AB - This article shows that multiple growth paths may occur in a politico-economic model of endogenous growth. This multiplicity is characterized by the coexistence of the low-tax, low-capital-flight equilibrium and a high-tax, high-capital-flight equilibrium. The likelihood of multiplicity is crucially related to the structure of power in society - namely, it is necessary that the politically decisive agents have a greater access to international capital markets than the average in the economy.

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KW - Redistribution

KW - Taxation

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Power, Distributive Conflicts, and Multiple Growth Paths

Abstract

Keywords

ASJC Scopus subject areas

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