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skills or not. The government influences individual decision-making by redistribution of income or by subsidizing investment …
Persistent link: https://www.econbiz.de/10012471291
The relationship between the degree of inequality and the demand for redistribution has been a central question in … gap between the income of the average and the median voter, should lead to increased demand for redistribution, as … demand for redistribution. Part of the explanation of this puzzle lies in the realization that it is not only (or even mainly …
Persistent link: https://www.econbiz.de/10012660048
enforcement. Optimal enforcement strategies are developed for both the anti-discrimination and the earnings redistribution models … redistribution model …
Persistent link: https://www.econbiz.de/10012477766
The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy …, of course, an additional incentive for income redistribution from wealthy to poor citizens is created and the logical …
Persistent link: https://www.econbiz.de/10012478985
We study how monetary policy affects the asymmetric effects of globalization. To this end, we build an open-economy heterogeneous-agent New Keynesian model (HANK), in which households differ in their income, wealth, and real and financial integration with international markets. We use the model...
Persistent link: https://www.econbiz.de/10012482432
This paper estimates the total value that individuals derive from their state's tax-and-transfer program, and shows how this value varies by income. The paper decomposes this total value into two components: redistributive value, which is due to predictable changes in income (and family...
Persistent link: https://www.econbiz.de/10012462377
Bigger governments raise the possibilities for corruption; more corruption may in turn raise the support for redistributive policies that intend to correct the inequality and injustice generated by corruption. We formalize these insights in a simple dynamic model. A positive feedback from past...
Persistent link: https://www.econbiz.de/10012467282
The distribution of human capital and income lies at the center of a nexus of forces that shape a country's economic, institutional and technological structure. I develop here a unified model to analyze these interactions and their growth consequences. Five main issues are addressed. First, I...
Persistent link: https://www.econbiz.de/10012468322
This paper constructs a simple model of pair-wise tournament competition to investigate categorical redistribution in … winner-take-all markets. We consider two forms of redistribution: category-sighted, where employers are allowed to use … equilibrium category-sighted redistribution scheme involves a constant handicap given to agents in the disadvantaged category …
Persistent link: https://www.econbiz.de/10012468590
We incorporate demand-side considerations in trade in a systematic but straightforward way. We do so by focusing on the role of inequality in the determination of trade flows and patterns. With nonhomothetic preferences, when countries are similar in all respects but asset inequality, we find...
Persistent link: https://www.econbiz.de/10012468607