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Multiple regimes in the preferences for redistribution

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  • Andros Kourtellos
  • Kyriakos Petrou

Abstract

This paper provides novel evidence of nonlinearities in the formation of preferences for redistribution by uncovering evidence of multiple regimes consistent with the presence of multiple equilibria and multiple steady states. Using threshold regressions that account for the endogeneity of the threshold variable, countries are classified into three groups that share common characteristics. Finally, our analysis reveals substantial evidence of parameter heterogeneity in the coefficient estimates of threshold regressions.

Suggested Citation

  • Andros Kourtellos & Kyriakos Petrou, 2024. "Multiple regimes in the preferences for redistribution," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 650-665, July.
    • Handle: RePEc:bla:buecrs:v:76:y:2024:i:3:p:650-665
    DOI: 10.1111/boer.12443
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