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In this paper, we propose a new measure of horizontal equity that overcomes many of the shortcomings of previous proposed measures. Our starting point is the observation that a well-behaved social welfare function need not evaluate global' (vertical equity) differences in after-tax income using...
Persistent link: https://www.econbiz.de/10013237932
We present and experimentally test a mechanism that provides a simple, natural, low cost, and realistic solution to the problem of compliance with socially determined efficient actions, such as contributing to a public good. We note that small self-governing organizations often place enforcement...
Persistent link: https://www.econbiz.de/10013125568
Discretionary policymaking can foster strategic complementarities between private sector decisions, thus leading to multiple equilibria. This article studies a simple example, originating with Kydland and Prescott, of a government which must decide whether to build a dam to prevent adverse...
Persistent link: https://www.econbiz.de/10013221106
Social contracts about inequality and redistribution are country-specific. We rely on a model of inequality and … redistribution where multiple steady states can emerge in given country. We link the model to the recent literature on beliefs and … we call 'dissipative inclusion', where redistribution and social inclusion are effectively achieved but accompanied by …
Persistent link: https://www.econbiz.de/10013096858
We consider optimal redistribution in a model where individuals can self-select into one of several possible sectors …
Persistent link: https://www.econbiz.de/10013103803
-led redistribution and greater acceptance of wage inequality (e.g., United States versus Western Europe). If individual nations evolve …-led redistribution to the poor. These patterns suggest that short-run inequality shocks can be reinforced in the labor market but do not … result in weaker political preferences for redistribution …
Persistent link: https://www.econbiz.de/10013113154
This paper discusses what determines the preferences of individuals for redistribution. We review the theoretical …
Persistent link: https://www.econbiz.de/10012757663
individualism and opposition to redistribution. This pattern cuts across known divides in the U.S., including urban–rural and north …
Persistent link: https://www.econbiz.de/10013218964
costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the …
Persistent link: https://www.econbiz.de/10013221848
.e., within countries) redistribution has miniscule effect on world income inequality. Thus, the traditional public finance … concern about the excess burden of redistribution cannot explain why there is so little world redistribution. Actual foreign …
Persistent link: https://www.econbiz.de/10013248240