TY  - RPRT
ID  - publications15217
UR  - http://tse-fr.eu/pub/25610
A1  - Landier, Augustin
A1  - Plantin, Guillaume
Y1  - 2011/10//
N2  - We model the link between inequality, lack of political commitment, and ex-cessive risk taking. If politicians cannot commit to a long-term tax schedule,
increasing returns to tax avoidance induce the middle class to take on non rewarded ?nancial risk despite risk aversion. Electoral pressure may lead an
incumbent politician to endorse this excessive risk taking if income inequal-ities are large. By increasing the scope for tax avoidance, globalization of
capital and human capital markets might have increased ?nancial fragility.
PB  - TSE Working Paper
T3  - TSE Working Paper
M1  - working_paper
TI  - Inequality, tax avoidance and financial instability
AV  - public
ER  -