2017
DOI: 10.1017/s0143814x17000125
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Income inequality and the growth of redistributive spending in the United States (US) states: is there a link?

Abstract: Prominent public policy models have hypothesised that rising income inequality will lead to more redistributive spending. Subsequent theoretical advancements and empirical research often failed to find a positive relationship between inequality and redistributive spending, however. Over the last few decades both income inequality and redistributive spending have been growing in the United States states. In this work, we consider whether temporal variation in inequality can explain variation in redistributive s… Show more

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Cited by 12 publications
(13 citation statements)
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“…Jaeger () also tests the effect of macroeconomic and social conditions on the demand for redistribution in European countries, finding that economic inequality and economic growth are associated with negative and positive preferences, respectively, which is consistent with M‐R model expectations. Most recently, Moldogaziev, Monogan, and Witko () finds evidence of a positive relationship between economic inequality in the United States and state‐level redistributive spending, noting that the results are robust to a variety of inequality and redistribution measures.…”
Section: What Factors Influence Redistributive Social Policy Decisions?mentioning
confidence: 99%
“…Jaeger () also tests the effect of macroeconomic and social conditions on the demand for redistribution in European countries, finding that economic inequality and economic growth are associated with negative and positive preferences, respectively, which is consistent with M‐R model expectations. Most recently, Moldogaziev, Monogan, and Witko () finds evidence of a positive relationship between economic inequality in the United States and state‐level redistributive spending, noting that the results are robust to a variety of inequality and redistribution measures.…”
Section: What Factors Influence Redistributive Social Policy Decisions?mentioning
confidence: 99%
“…This paper, as well as previous literature, show how student debt can influence the future of current students. Theoretical advancements and empirical research often fail to find a positive relationship between inequality and redistributive spending (Moldogaziev et al, 2018). This may help explain why student loans repayments do not bode well with low-and medium-income households.…”
Section: Resultsmentioning
confidence: 99%
“…What other nongovernmental group would be able to serve to reduce inequality? State governments that are already constrained economically are being tasked to intervene in inequality’s growth (Moldogaziev, Monogan, and Witko 2017), something they may be unable or unwilling to continue doing because of both ideology and practicality.…”
Section: Discussionmentioning
confidence: 99%