Social polarization, industrialization, and fiscal instability: Theory and evidence

Journal of Development Economics

Volumn 72, Issue 1, 2003, Pages 223-252

  Woo, Jaejoon ^a,b  

^a DEPAUL UNIVERSITY   (United States)

^b OECD   (France)

Author keywords

Fiscal deficits; Income inequality; Industrialization; Polarization; Volatility

Indexed keywords

DEVELOPING WORLD; ECONOMIC INSTABILITY; FISCAL POLICY; INDUSTRIALIZATION;

EID: 0042627757     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3878(03)00075-0     Document Type: Article

References (50)

1. Agenor P. Montiel P. Development Macroeconomics 1996 Princeton Univ. Press Princeton
2. Alesina A. Drazen A. Why are stabilizations delayed? American Economic Review 81 5 1991 1170-1188
3. Alesina A. Rodrik D. Distributive politics and economic growth Quarterly Journal of Economics 109 2 1994 465-490
4. Alesina A. Tabellini G. A positive theory of fiscal deficits and government debt Review of Economic Studies 57 3 1990 403-414
5. Alesina A. Hausmann R. Hommes R. Stein E. Budget institutions and fiscal performance in Latin America Journal of Development Economics 59 2 1999 253-273
6. Azariadis C. Drazen A. Threshold externalities in economic development Quarterly Journal of Economics 105 2 1990 501-526
7. Banks A.S. Cross-National Time Series Data Archives 1997 State University of New York Binghamton
8. Benabou R. Ok E. Social mobility and the demand for redistribution Quarterly Journal of Economics 116 2 2001 447-487
9. Berg A. Sachs J.D. The debt crisis: Structural explanations of country performance Journal of Development Economics 29 3 1988 271-306
10. Bernheim B.D. Ray D. Markov perfect equilibria in altruistic growth economies with production uncertainty Journal of Economic Theory 47 1 1989 195-202
11. Berthelemy J.C. Bourguignon F. Growth and Crisis in Côte d'Ivoire 1996 World Bank Washington, DC
12. Birdsall N. Ross D. Sabot R.H. Inequality and growth reconsidered: Lessons from East Asia The World Bank Economic Review 9 3 1995 477-508
13. Clarke G. More evidence on income distribution and growth Journal of Development Economics 47 2 1995 403-427
14. Cukierman A. Edwards S. Tabellini G. Seigniorage and political instability American Economic Review 82 3 1992 535-555
15. Deininger K. Squire L. A new data set measuring income inequality The World Bank Economic Review 10 3 1996 565-591
16. Easterly W. Rodriguez C. Schmidt-Hebbel K. Public Sector Deficits and Macroeconomic Performance 1994 Oxford Univ. Press New York
17. Edwards S. Tabellini G. Explaining fiscal policies and inflation in developing countries Journal of International Money and Finance 10 1991 S16-S48 (Supplement)
18. Fields G.S. Changing labor market conditions and economic development in Hong Kong, the Republic of Korea, Singapore, and Taiwan, China The World Bank Economic Review 8 3 1994 395-414
19. Fields, G.S., Jakubson, G.H., 1994. New Evidence on the Kuznets Curve. Cornell University. Unpublished working paper.
20. Galor O. Zeira J. Income distribution and macroeconomics Review of Economic Studies 60 1 1993 35-52
21. Gavin M. Perotti R. Fiscal policy in Latin America Bernanke B.S. Rotemberg J. NBER Macroeconomics Annual 1997 11-61 The MIT Press Cambridge
22. Gelb A. Knight J.B. Sabot R.H. Public sector employment, rent seeking and economic growth The Economic Journal 101 408 1991 1186-1199
23. Gillis M. Perkins D. Roemer M. Snodgrass D. Economics of Development 4th ed. 1996 W.W. Norton and Company New York
24. Goldin C. Katz L. The origins of technology-skill complementarity Quarterly Journal of Economics 113 3 1998 693-732
25. Hallerberg M. von Hagen J. Electoral institutions, cabinet negotiations, and budget deficits in the European union Poterba J.M. von Hagen J. Fiscal Institutions and Fiscal Performance 1999 209-232 The University of Chicago Press Chicago
26. IMF, various issues. Government Finance Statistics Yearbook. IMF, Washington, DC.
27. Inter-American Development Bank Facing Up to Inequality 1998 Inter-American Development Bank Washington, DC
28. Kauffman R. Stallings B. The political economy of Latin American populism Dornbusch R. Edwards S. The Macroeconomics of Populism in Latin America 1991 15-34 The University of Chicago Press Chicago
29. Knack S. Keefer P. Institutions and economic performance: Cross-country tests using alternative institutional measures Economics and Politics 7 3 1995 207-227
30. Leininger W. The existence of perfect equilibria in a model of growth with altruism between generations Review of Economic Studies 53 3 1986 349-367
31. Mackenzie G.A. Orsmond D. Gerson P. The composition of fiscal adjustment and growth: Lessons from fiscal reforms in eight economies IMF Occasional Paper 149 1997
32. Meltzer A. Richards S. A rational theory of the size of government Journal of Political Economy 89 5 1981 914-927
33. Perotti R. Political equilibrium, income distribution, and growth Review of Economic Studies 60 4 1993 755-776
34. Persson T. Tabellini G. Is inequality harmful for growth?: Theory and evidence American Economic Review 84 3 1994 600-621
35. Psacharopoulos G. Returns to education: A further international updated and implications Journal of Human Resources 20 4 1985 583-604
36. Radelet S. Sachs J.D. The onset of the East Asian financial crisis NBER Working Paper 6680 1998
37. Rodrik D. Understanding economic policy reform Journal of Economic Literature 34 1 1996 9-41
38. Roubini N. Economic and political determinants of budget deficits in developing countries Journal of International Money and Finance 100s 1991 49-72 (Supplement)
39. Sachs J.D. Social conflict and populist policies in Latin America NBER Working Paper 2897 1989
40. Talvi, E., Vegh, C., 1996. Can Optimal Fiscal Policy be Procyclical? University of California at Los Angeles. Unpublished working paper.
41. Taylor C.L. Hudson M.C. World Handbook of Political and Social Indicators 1972 Yale Univ. Press New Haven
42. Tornell A. Lane P. Are windfall gains a curse? A non-representative agent model of the current account and fiscal policy Journal of International Economics 44 1 1998 83-112
43. Velasco A. A model of endogenous fiscal deficits and delayed fiscal reforms Poterba J.M. von Hagen J. Fiscal Institutions and Fiscal Performance 1999 37-57 The University of Chicago Press Chicago
44. von Hagen J. Harden I. National budget processes and fiscal performance European Economy, Reports and Studies 3 1994 311-418
45. Weingast B.R. Shepsle K.A. Johnsen C. The political economy of benefits and costs: A new approach to distributive politics Journal of Political Economy 89 4 1981 642-664
46. Woo, J., 1999. Fiscal Instability, Growth, and Inflation: Social Polarization. Harvard University. Unpublished working paper.
47. Woo J. Economic, political, and institutional determinants of public deficits Journal of Public Economics 87 (3-4) 2003 387-426
48. World Bank The East Asian Miracle: Economic Growth and Public Policy 1993 Oxford Univ. Press New York
49. World Bank Bureaucrats in Business: The Economics and Politics of Government Ownership 1995 Oxford Univ. Press New York
50. World Bank World Development Indicators CD-Rom 1999 World Bank Washington, DC