The main object of this research is to analyze the relationship between the Degree of social mobility in society and the amount of
redistributional government policies.
The extent of fiscal activities with redistributional effects varies considerably among different countries and in particular between the European countries and the United States, Mainstream theoretical literature in political economy tries to explain these differences by modeling the political process through which fiscal policies are determined. In this process a crucial role is played by! the preferences of agents over these policies which depends on the position of agents in the distribution of income and/or wealth in society. However little attention has been devoted to analyzing how this conflict would change if agents faced different probabilities of moving to different income or wealth classes. i.e.. how social mobility affects redistributional fiscal policy-making.
By ignoring social mobility. these studies neglect an important element conditioning the voting preferences of agents: namely, because agents vote over future policies. what is important is not only the current position of the voter but his expected position at the time in which these policies are implemented. Thus the first goal of this research is to clarify the influence of social mobility on the political al outcome, Moreover. if it is possible to identify a causal link between the degree of social mobility to the size of fiscal activities, then at the same time au inverse causation can also be hypothesized with redistributional policies effecting the degree of social mobility.
My intention is to study this issue not only from a theoretical point of view but also from an empirical approach. And from this point of view I am interested in conducting a c cross-country comparison. first. among European countries and. secondly between European countries and other industrialized countries.
In studying the importance of social mobility for the determination of fiscal policies, this project aims at determining whether the variation in the extent of fiscal, activities among various countries can be explained by differences in the degree of- each country's social mobility. The main impact of the study is to extend the analysis in mainstream political economy, which currently focuses on the relationship between distribution and public fiscal policies, to include social-mobility.