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  • Motivated by the recent rise of populism in Western democracies, we develop a tractable equilibrium model in which a populist backlash emerges endogenously in a strong economy. In the model, voters dislike inequality, especially the high consumption of ?elites.? Economic growth exacerbates inequality due to heterogeneity in preferences , which leads to heterogeneity in returns on capital. In response to rising inequality, voters optimally elect a populist promising to end globalization. Equality is a luxury good. Countries with more inequality, higher financial development, and trade deficits are more vulnerable to populism, both in the model and in the data. (xsd:string)
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  • 2021 (xsd:gyear)
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  • 2021 (xsd:gyear)
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  • 10.1111/jofi.13081 ()
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  • Inequality Aversion, Populism, and the Backlash against Globalization (xsd:string)
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  • In The Journal of Finance, 76(6), 2857-2906, 2021 (xsd:string)
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