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Full-Text Articles in Social and Behavioral Sciences
A Political Economy Perspective On Persistent Inequality, Inflation, And Redistribution, Radhika Lahiri, Shyama Ratnasiri
A Political Economy Perspective On Persistent Inequality, Inflation, And Redistribution, Radhika Lahiri, Shyama Ratnasiri
Radhika Lahiri
In this paper we examine the dynamics of the link between inequality and inflation from a political economy perspective. We consider a simple dynamic general equilibrium model in which agents vote over the desired inflation rate in each period, and inequality is persistent. Inflation in our model is a mechanism of redistribution, and we find that the link between inequality and inflation within any period or over time depends on institutional and preference related parameters. Furthermore, we find that differences in the initial distributions of wealth can yield a diverse set of patterns for the evolution of the inflation and …
Public And Private Expenditures On Health In The Presence Of Inequality And Endogenous Mortality: A Political Economy Perspective, Radhika Lahiri, Elizabeth W. Richardson
Public And Private Expenditures On Health In The Presence Of Inequality And Endogenous Mortality: A Political Economy Perspective, Radhika Lahiri, Elizabeth W. Richardson
Radhika Lahiri
In this paper we study an overlapping-generations model in which agents’ mortality risks, and consequently impatience, are endogenously determined by private and public investment in health care. The proportion of revenues allocated for public health care is also endogenous, determined as the outcome of a voting process. Higher substitutability between public and private health is associated with a “crowding-out” effect which leads to lower public expenditures on health care in the political equilibrium. This in turn impacts on mortality risks and impatience leading to a greater persistence in inequality and long run distributions of wealth that are bimodal.
Concerning Inequality, Technology Adoption, And Structural Change, Radhika Lahiri, Shyama Ratnasiri
Concerning Inequality, Technology Adoption, And Structural Change, Radhika Lahiri, Shyama Ratnasiri
Radhika Lahiri
Empirical evidence suggests that there has been a divergence over time in income distributions across countries and within countries. Furthermore, developing economies show a great deal of diversity in their growth patterns during the process of economic development. For example, some of these countries converge rapidly on the leaders, while others stagnate, or even experience reversals and declines in their growth processes. In this paper we study a simple dynamic general equilibrium model with household specific costs of technology adoption which is consistent with these stylized facts. In our model, growth is endogenous, and there are two-period lived overlapping generations …