Inequality, redistribution and growth: Theory and evidence

From a macro-perspective, the thesis provides a political economic model that analyses the joint determination of inequality, corruption, taxation, education and economic growth in a dynamic environment. It demonstrates how redistributive taxation is affected by the distribution of wealth and limited by various kinds of incentive costs of taxation and the lobbying activity of high-income groups. This result confirms the proposition that in countries where the economy is governed by a high degree of corruption and inequality a lower tax/GDP ratio, lower development of human capital and thus, lower economic growth is observed.