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We solve the problem of a social planner who seeks to minimize inequality via transfers with a fixed public budget in a distribution of exogenously given incomes. The appropriate solution method depends on the objective function: If it is convex, as in the case of the absolute mean deviation, it...
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life-cycle model, we find that redistribution by taxes and transfers off sets 54% of the inequality in lifetime earnings …
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Using a laboratory experiment, we present first evidence that social image concerns causally reduce the take-up of an individually beneficial transfer. Our design manipulates the informativeness of the take-up decision by varying whether transfer eligibility is based on ability or luck, and how...
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People with higher-incomes tend to support less redistribution than lower-income people. This has been attributed not … each of these mechanisms and compare their mediating roles in the relationship between status and redistribution. In our … primary mechanism underlying self-serving differences in support for redistribution. …
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