Abstract
The quesion of whether the size distribution of income is subject to cyclical fluctuations in unemployment and inflation has been investigated in several studies. In these studies, however, the fact that unemployment, inflation and distribution may be influenced intentionally by policy makers is ignored. In order to investigate whether any political influence on the size distribution of income actually exists, a model is formulated in which the distribution not only depends on unemployment and inflation but also on a variable representing the political process. The model is tested using time series data pertaining to the case of the US in the period 1958 to 1989. The results indicate that inequality tends to be negatively influenced by Democratic administrations.
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