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• W2054032536 abstract "Standard majority-voting models predict that redistribution is positively linked to the mean-to-median income ratio but empirical evidence is mixed. This paper shows that the different empirical reactions to rising mean-to-median income ratios can be rationalized in a simple Romer-Roberts-Meltzer-Richard framework with imperfect information. In such a model, it is important to consider the source of rising mean-to-median ratios. Income growth of the poor can lead to less redistribution as more agents perceive themselves to be rich, which tends to reduce the support for redistribution. An empirical application reveals that the model can explain a substantial part of the first Reagan tax cut." @default.
• W2054032536 created "2016-06-24" @default.
• W2054032536 creator A5050692659 @default.
• W2054032536 date "2013-02-19" @default.
• W2054032536 modified "2023-09-24" @default.
• W2054032536 title "Imperfect information and the Meltzer-Richard hypothesis" @default.
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• W2054032536 doi "https://doi.org/10.1007/s11127-013-0072-z" @default.
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