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Income Distribution in the United States

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  • Hibbs, Douglas A.
  • Dennis, Christopher

Abstract

Political action has affected postwar income distribution in the United States mainly through policy-induced variations in macroeconomic activity and government transfer benefits in proportion to total income. We present a small dynamic model of the connections among the partisan balance of power, macroeconomic fluctuations, transfer spending trends, and income distribution outcomes. The model is based on the premise that the parties have different distributional goals, and it is designed to identify how shifts in party control of the presidency and the strength of the parties in Congress have affected the distribution of after-tax, after-transfer income by influencing cyclical economic performance and the flow of resources to transfer programs. We therefore extend the “partisan theory” of macroeconomic policy to the domain of income distribution outcomes.

Suggested Citation

  • Hibbs, Douglas A. & Dennis, Christopher, 1988. "Income Distribution in the United States," American Political Science Review, Cambridge University Press, vol. 82(2), pages 467-490, June.
    • Handle: RePEc:cup:apsrev:v:82:y:1988:i:02:p:467-490_08
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    Cited by:

    1. Mueller, Dennis C. & Stratmann, Thomas, 2003. "The economic effects of democratic participation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2129-2155, September.
    2. Kannan, Viji Diane & Brown, Theodore M. & Kunitz, Stephen J. & Chapman, Benjamin P., 2019. "Political parties and mortality: The role of social status and personal responsibility," Social Science & Medicine, Elsevier, vol. 223(C), pages 1-7.
    3. Hibbs, Douglas A, Jr, 2000. "Bread and Peace Voting in U.S. Presidential Elections," Public Choice, Springer, vol. 104(1-2), pages 149-180, July.
    4. Scheuerle, Andreas J., 1996. "Rationale Klienteltheorie und Parteienkooperation," Tübinger Diskussionsbeiträge 61, University of Tübingen, School of Business and Economics.
    5. Troeger, Vera, 2012. "De Facto Capital Mobility, Equality, and Tax Policy in Open Economies," CAGE Online Working Paper Series 84, Competitive Advantage in the Global Economy (CAGE).
    6. Lane Kenworthy, 2010. "How Much Do Presidents Influence Income Inequality?," Challenge, Taylor & Francis Journals, vol. 53(2), pages 90-112.
    7. Marco E. Terrones, 1991. "Macroeconomic policy and elections: Theories and challenges," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 6(2), pages 173-195.
    8. Kenneth Scheve, 2003. "Public demand for low inflation," Bank of England working papers 172, Bank of England.

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