The Evolution of Ideology, Fairness and Redistribution
Journal
Economic Journal
ISSN
0013-0133
Type
journal article
Date Issued
2012-12
Author(s)
Abstract
Ideas about what is ‘fair' influence preferences for redistribution. We study the dynamic evolution of different economies in which redistributive policies, perception of fairness, inequality and growth are jointly determined. We show how including beliefs about fairness can keep two otherwise identical countries on different development paths for a very long time. We show how different initial conditions regarding how ‘fair' is the same level of inequality can lead to two permanently different steady states. We also explore how bequest taxation can be an efficient way of redistributing wealth to correct ‘unfair' past accumulation of inequality.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Publisher
Wiley-Blackwell
Publisher place
Oxford
Volume
122
Number
565
Start page
1244
End page
1261
Pages
18
Subject(s)
Eprints ID
222057