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Inequality and club formation

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  • Jaramillo, Fernando
  • Kempf, Hubert
  • Moizeau, Fabien

Abstract

We study the relationship between social segmentation and income inequality by means of the economic theory of clubs with private provision of the club good. After having characterized the equilibrium partition of society in clubs and investigating its characteristics, we show how the clubs' sizes depend on the rate of income increase and compare segmentation profiles arising in societies characterized by different inequality patterns.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 87 (2003)
Issue (Month): 5-6 (May)
Pages: 931-955

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Handle: RePEc:eee:pubeco:v:87:y:2003:i:5-6:p:931-955

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Web page: http://www.elsevier.com/locate/inca/505578

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Cited by:
  1. Michele Giuseppe Giuranno, 2009. "Regional Income Disparity and the Size of the Public Sector," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 697-719, October.
  2. Michele Giuseppe Giuranno, 2005. "Income Inequality and the Size of the Public Sector," Economics Discussion Papers 603, University of Essex, Department of Economics.
  3. Fernando Jaramillo & Hubert Kempf, 2005. "On the Joint Dynamics of Inequality and Growth," 2005 Meeting Papers 638, Society for Economic Dynamics.

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