Inequality, poverty and the composition of redistribution
研究了社会支出与监管两种再分配工具的选择:贫困率越高,越倾向用监管来再分配;而不平等则推动社会支出。实证表明忽略贫困会扭曲不平等对再分配的影响。
Abstract We study the use of social expenditures and regulation for redistribution. When regulated goods are essential in the consumption bundle of the poor, a high poverty rate creates incentives to increase redistribution through regulation. By contrast, inequality directs redistribution towards social expenditures. We propose a theoretical model that captures the trade-off between these two redistributive policies and test the model implications with a novel municipality dataset on income and local government policies. Theory predicts and empirical evidence supports that failing to account for poverty biases the effect of inequality on redistribution. Our evidence also reflects the positive connection between poverty and the use of regulation for redistribution.