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A transfer from a richer individual to a poorer one seems to be the most intuitive and straightforward way of reducing income inequality in a society. However, can such a transfer reduce the welfare of the society? We show that a rich-to-poor transfer can induce a response in the individuals'...
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conventional wisdom, rather than calling for more redistribution, the presence of this scale dependence provides a rationale for …. At an aggregate level, a rise in redistribution induces a compression effect on the distribution of pre-tax returns. In … the financial market, I identify general equilibrium trickle-up externalities that provide a force for more redistribution …
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The relationship between inequality and redistribution is usually studied under the assumption that the government …
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The relationship between inequality and redistribution is usually studied under the assumption that the government …
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Income inequality is rising but there seems to be no clear-cut effect on redistribution preferences, which is … differences in individual merit and it is primarily non-merit based inequality that affects redistribution preferences. This view … redistribution preferences and that it is a better predictor than previously used measures. This suggests that the socio …
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