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Alesina Drazen (1991) - Why Are Stabilizations Delayed (view source)
Revision as of 01:59, 8 March 2011
, 01:59, 8 March 2011→Income Dispersion
===Income Dispersion===
If the utility loss is decreaing in income and if income is unobservable, then an a mean preserving spread in income the that keeps the expected minimum of the <math>y\,</math>'s constant will result in longer times until stabilization.
*If <math>\theta'(y) < 0\,</math> the poor lose the war, because the rich can hold out longer.
*This could be interpreted as the funds available for political lobbying.
==Extensions==
