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Where Do Losers Lose the Least? Regime Type and the Unequal Gains from Trade Lauren Allen & Sylvia Cesar.

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Presentation on theme: "Where Do Losers Lose the Least? Regime Type and the Unequal Gains from Trade Lauren Allen & Sylvia Cesar."— Presentation transcript:

1 Where Do Losers Lose the Least? Regime Type and the Unequal Gains from Trade Lauren Allen & Sylvia Cesar

2 As a country opens its economy to trade, will income inequality be ameliorated? Do these effects depend on regime type?

3 Hypothesis: democracies are better at redistributing the losses and gains from trade

4 Trade & Inequality ●Heckscher-Ohlin Model ○Stolper-Samuelson effect ●Ambiguous effects

5 Democracy & Inequality ●Governments’ incentives and staying in power ●Median voter ●Government Ideology

6 Methodology Income distribution SWIID Gini coefficient (post-tax)

7 Methodology ●Economic Globalization ○Axel Dreher 2006 ●Regime Type ○DD Dichotomous indicator (1-0)

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11 Conclusion ●Regime type and inequality ●Regime type and welfare ●Malapportionment and welfare

12 Further Research ●Robust testing: Country Fixed Effects ●Theory: ○Autocracies’ incentives to provide welfare


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