This paper explores the role of multilateral transfers in achieving strict Pareto improvements in welfare, focusing on identifying conditions under which their use is warranted when carbon prices differ internationally and there are impediments to international trade. Using a general equilibrium...

Deutschland ist ein Land, das kräftig von oben nach unten umverteilt, innerhalb von Haushalten, durch Steuern und Transfers sowie auch durch die Bereitstellung öffentlicher Güter: In kaum einem anderen Land ist die Differenz zwischen der Ungleichheit der Brutto- und Nettoeinkommen größer...

Individuals vary considerably in how much they earn during their lifetimes. This study examines the role of the tax‐and‐transfer system in mitigating such inequalities, which could otherwise lead to disparities in living standards. Utilizing a life‐cycle model, we determine that the...

Market forces beyond individual control are a central driver of income inequality, a phenomenon we refer to as market luck. In meritocratic societies, this raises the question of whether individuals perceive such inequalities as fair. To address this question, we conduct experiments in the US,...

Do beliefs about fairness interact with past experiences of labor market shocks to condition redistributive preferences? We field a large-scale survey experiment to investigate the effect of informing individuals that growth in automation could disrupt labor markets in ways (possibly) viewed as...

Does socioeconomic diversity affect individuals' preferences for redistribution? I exploit exogenous variation in exposure to diversity from a large-scale financial aid program that drastically raised the share of low-income students at elite universities in Colombia. I survey students who...

Previous literature demonstrates that beliefs about the determinants of income inequality play a major role in individual support for income redistribution. This study investigates how people form beliefs regarding the extent to which work versus luck determines income inequality. Specifically,...

Why do some people believe that social mobility may result in a fair distribution of income? We hypothesize that people who enjoy higher levels of free choice and control over life outcomes are more likely to consider the income distribution process to be fair, and as a consequence be less...

In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing lifetime earnings between individuals with different skill endowments and by providing individuals with insurance against lifetime earnings risk. Based on a dynamic life-cycle...

In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing lifetime earnings between individuals with different skill endowments and by providing individuals with insurance against lifetime earnings risk. Based on a dynamic life-cycle...