Political Rivalry Effects on Human Capital Accumulation and Inequality: A New Political Economy Approach

• Type: Article in International Scientific Journal
• Date: 2017

Authors

Sochirca, E (Author) Other; Óscar Afonso (Author) FEP; Silva, ST (Author) FEP

Journal

Title: Metroeconomica

Vol. 68

Pages: 699-729

ISSN: 0026-1386

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 5 Citations

Other information

Authenticus ID: P-00N-6EE

DOI: 10.1111/meca.12140

Abstract (EN): We propose an endogenous growth model with new political economy elements in order to (1) examine how political incentives affect economic allocations and (2) study the effects of political rivalry on human capital accumulation and income inequality. Focusing on two important policies affecting economic performancefiscal policy and public investments in human capital accumulationwe find that different political incentives have distinct effects on policies and economic allocations. We also find that political rivalry increases income inequality and reduces economic growth and human capital accumulation through its negative impact on public investments in education, wages and individual learning choice.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 31