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Macroeconomics and DevelopmentRoberto Frenkel and the Economics of Latin America$
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Mario Damill, Martín Rapetti, and Guillermo Rozenwurcel

Print publication date: 2016

Print ISBN-13: 9780231175081

Published to Columbia Scholarship Online: September 2016

DOI: 10.7312/columbia/9780231175081.001.0001

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United States Size Distribution and the Macroeconomy 1986–2009

United States Size Distribution and the Macroeconomy 1986–2009

Chapter:
(p.311) Chapter 15 United States Size Distribution and the Macroeconomy 1986–2009
Source:
Macroeconomics and Development
Author(s):

Lance Taylor

Armon Rezai

Rishabh Kumar

Nelson Barbosa

Laura Carvalho

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231175081.003.0015

the chapter analizes income distribution in the US, focusing on its regressive evolution and highlighting the severe constraints that prevent the reduction of inequality in the US. The authors develop a simulation model to illustrate how politically “reasonable” policies such as increased taxes on high income households, higher transfers to people with low incomes, and raising wages at the bottom do not reduce rich vs. poor inequality by much.

Keywords:   income distribution, inequality, tax and transfers policy, wage policy, simulation models, US economy

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