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The Political Economy of Distribution and Growth in Chile

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  • Klaus Schmidt-Hebbel

Abstract

This paper addresses the following questions on the political economy of distribution and growth in Chile. How does Chile compare to the world in government size, income distribution, and per capita GDP? Which is the relation between income distribution, government size and structure, and growth in a political-economy model of endogenous growth? How do changes in income distribution affect growth through changes in the size of government, in a model calibrated for Chile? Which are the dynamics of distribution and growth, when they are shaped by political leadership, the policy-making process, and the quality of institutions and policies? Under which conditions of such dynamics does a non-monotonic relation between income distribution and growth emerge, akin to the Kuznets curve? How do Chile's leadership, policy-making process, and reforms affect equity and growth? Which are the political economy requirements for successful adoption of ten key reforms to support growth and equity in Chile?

Suggested Citation

  • Klaus Schmidt-Hebbel, 2012. "The Political Economy of Distribution and Growth in Chile," Documentos de Trabajo 417, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:417
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    File URL: https://www.economia.uc.cl/docs/doctra/dt-417.pdf
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    1. The Political Economy of Distribution and Growth in Chile
      by Maximo Rossi in Wikiprogress América Latina on 2012-05-29 17:18:00

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    1. Ebert, Laura & La Menza, Tania, 2015. "Chile, copper and resource revenue: A holistic approach to assessing commodity dependence," Resources Policy, Elsevier, vol. 43(C), pages 101-111.

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    More about this item

    Keywords

    Fiscal Income distribution; economic growth; political economy;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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