Yongsung, Chang; Sun-Bin, Kim - In: The B.E. Journal of Macroeconomics 11 (2012) 1, pp. 1-24
Using a standard incomplete-markets model, we compute the welfare of two socioeconomic systems: laissez-faire and egalitarianism. The egalitarian system (in which after-tax wages are compressed) provides insurance against income risks but at the cost of inefficiency: it undermines productive...
