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The Evolution of Ideology, Fairness and Redistribution

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  • Alberto Alesina

    (Harvard University)

  • Guido Cozzi

    ()
    (Durham Business School)

  • Noemi Mantovan

    (University of Glasgow)

Abstract

Ideas about what is "fair" above and beyond the individuals' position in the income ladder 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 fairness explains various observed correlations between inequality, redistribution and growth. We also show how different beliefs about fairness can keep two otherwise identical countries in different development paths for a very long time.

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Bibliographic Info

Paper provided by Durham University Business School in its series Working Papers with number 2009_05.

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Date of creation: 01 Dec 2009
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Handle: RePEc:dur:durham:2009_05

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Postal: Durham University Business School, Mill Hill Lane, Durham DH1 3LB, England
Phone: +44 (0)191 334 5200
Fax: +44 (0)191 334 5201
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Web page: http://www.dur.ac.uk/business
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References

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  1. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," Levine's Bibliography 122247000000000283, UCLA Department of Economics.
  2. Heckman, James J., 2008. "Schools, Skills, and Synapses," IZA Discussion Papers 3515, Institute for the Study of Labor (IZA).
  3. Karabarbounis, Loukas, 2010. "One dollar, one vote," MPRA Paper 25274, University Library of Munich, Germany.
  4. Bénabou, Roland & Tirole, Jean, 2005. "Belief in a Just World and Redistributive Politics," CEPR Discussion Papers 4952, C.E.P.R. Discussion Papers.
  5. Rafael Di Tella & Juan Dubra, 2010. "A note on Fairness and Redistribution," Harvard Business School Working Papers 11-059, Harvard Business School.
  6. Aghion, Philippe & Bolton, Patrick, 1997. "A Theory of Trickle-Down Growth and Development," Review of Economic Studies, Wiley Blackwell, vol. 64(2), pages 151-72, April.
  7. Alesina, Alberto & Angeletos, George-Marios, 2005. "Corruption, inequality, and fairness," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1227-1244, October.
  8. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  9. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
  10. Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
  11. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
  12. Alberto F. Alesina & Guido Cozzi & Noemi Mantovan, 2009. "The Evolution of Ideology, Fairness and Redistribution," NBER Working Papers 15587, National Bureau of Economic Research, Inc.
  13. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
  14. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  15. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality In The United States, 1913-1998," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 1-39, February.
  16. Lindbeck, Assar & Weibull, Jorgen W., 1993. "A model of political equilibrium in a representative democracy," Journal of Public Economics, Elsevier, vol. 51(2), pages 195-209, June.
  17. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
  18. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  19. Alberto F. Alesina & Paola Giuliano, 2009. "Preferences for Redistribution," NBER Working Papers 14825, National Bureau of Economic Research, Inc.
  20. Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 755-76, October.
  21. Thomas Piketty, 1994. "Social Mobility and Redistributive Politics," Working papers 94-15, Massachusetts Institute of Technology (MIT), Department of Economics.
  22. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
  23. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  24. Zheng Song, 2012. "Persistent Ideology And The Determination Of Public Policy Over Time," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(1), pages 175-202, 02.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Evolution of Ideology, Fairness and Redistribution
    by maximorossi in NEP-LTV blog on 2012-07-06 13:48:56
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Cited by:
  1. Alberto Alesina & Guido Cozzi & Noemi Mantovan, 2009. "The evolution of ideology, fairness and redistribution," Working Papers 2009_29, Business School - Economics, University of Glasgow.
  2. Alesina, Alberto F. & Algan, Yann & Cahuc, Pierre & Giuliano, Paola, 2010. "Family Values and the Regulation of Labor," CEPR Discussion Papers 7688, C.E.P.R. Discussion Papers.
  3. Francesco Forte, 2012. "The New Macro Political Economy of Alberto Alesina," Atlantic Economic Journal, International Atlantic Economic Society, vol. 40(4), pages 417-428, December.
  4. Ooghe, Erwin & Peichl, Andreas, 2014. "Fair and efficent taxation under partial control," ZEW Discussion Papers 14-002, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Barth, Erling & Moene, Karl Ove, 2012. "The Equality Multiplier: How Wage Setting and Welfare Spending Make Similar Countries Diverge," IZA Discussion Papers 6494, Institute for the Study of Labor (IZA).
  6. Guido Cozzi & Fabio Privileggi, 2009. "The fractal nature of inequality in a fast growing world: new version," Working Papers 2009_30, Business School - Economics, University of Glasgow.
  7. Rafael Di Tella & Juan Dubra, 2010. "A note on Fairness and Redistribution," Harvard Business School Working Papers 11-059, Harvard Business School.
  8. Alberto Alesina & Paola Giuliano, 2013. "Culture and Institutions," NBER Working Papers 19750, National Bureau of Economic Research, Inc.
  9. Erik SCHOKKAERT & Tom TRUYTS, 2014. "Preferences for redistribution and social structure," Center for Economic Studies - Discussion papers ces14.01, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  10. Rafael Di Tella & Juan Dubra, 2013. "Fairness and Redistribution: Comment," American Economic Review, American Economic Association, vol. 103(1), pages 549-53, February.
  11. Tausch, Arno & Heshmati, Almas, 2014. "Testing an EU-Candidate's Place on the Maps of Global Economic, Political and Social Values: The Case of Turkey," IZA Discussion Papers 8163, Institute for the Study of Labor (IZA).
  12. Alston, Lee J. & Melo, Marcus Andre & Mueller, Bernardo & Pereira, Carlos, 2013. "Changing social contracts: Beliefs and dissipative inclusion in Brazil," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 48-65.
  13. Bruno Martorano, 2012. "The Impact of Uruguay’s 2007 Tax Reform on Equity and Efficiency," Working Papers - Economics wp2012_06.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  14. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.

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