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‘happiness’, we find that there is a large, negative and significant effect of inequality on happiness in Europe but not in the … US. There are two potential explanations. First, Europeans prefer more equal societies (inequality belongs in the utility … ideological lines. There is evidence of ‘inequality generated’ unhappiness in the US only for a sub-group of rich leftists. In …
Persistent link: https://www.econbiz.de/10005123800
excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how … configurations of technology, inequality and redistributive policy are feasible in the long run, when all three are endogenous. I … show in particular how the diffusion of technology leads to the ‘exporting’ of inequality across borders; and how this, in …
Persistent link: https://www.econbiz.de/10005661547
This paper investigates physiological responses to perceptions of unfair pay. In a simple principal agent experiment agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. In this environment unfairness can arise...
Persistent link: https://www.econbiz.de/10009144731
inequality and environmental protection. We present a class of models (which captures a static model as well as an overlapping …
Persistent link: https://www.econbiz.de/10005662063
This paper shows that a zero-sum redistribution of wealth within a country can have persistent aggregate effects. Motivated by the case of an unanticipated inflation episode, we consider redistribution shocks that shift resources from old to young households. Aggregate effects arise because...
Persistent link: https://www.econbiz.de/10005498105
Episodes of unanticipated inflation reduce the real value of nominal claims and thus redistribute wealth from lenders to borrowers. In this study, we consider redistribution as a channel for aggregate and welfare effects of inflation. We model an inflation episode as an unanticipated shock to...
Persistent link: https://www.econbiz.de/10005114251
, wealth inequality in the EA decreases with unexpected inflation, although in some countries (Austria, Germany and Malta …) inequality increases due to presence of relatively few young borrowing HHs. We document that HHs inflation exposure varies …
Persistent link: https://www.econbiz.de/10011084690
This paper provides a quantitative assessment of the effects of inflation through changes in the value of nominal assets. We document nominal positions in the US across sectors as well as different groups of households, and estimate the redistribution brought about by a moderate inflation...
Persistent link: https://www.econbiz.de/10005789015
A bargaining solution balances fairness and efficiency if each player's payoff lies between the minimum and maximum of the payoffs assigned to him by the egalitarian and utilitarian solutions. In the 2-person bargaining problem, the Nash solution is the unique scale-invariant solution satisfying...
Persistent link: https://www.econbiz.de/10009324194
A bargaining solution guarantees minimal equity if each player's payoff is at least as large as the minimum of the payoffs assigned to him by the equal-gain (i.e., egalitarian) and equal-loss solutions. The Kalai-Smorodinsky solution is the unique scale-invariant 2-person solution with this...
Persistent link: https://www.econbiz.de/10009368519