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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

    (Bangor University)

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 in di¤erent 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

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Bibliographic Info

Paper provided by Durham University Business School in its series Working Papers with number 2012_05.

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Date of creation: 20 Apr 2012
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Handle: RePEc:dur:durham:2012_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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Keywords: Endogenous Growth; Basic and Applied R&D; Endogenous Technological Change; Common Law;

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References

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  1. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," NajEcon Working Paper Reviews, www.najecon.org 122247000000000306, www.najecon.org.
  2. James J. Heckman, 2008. "Schools, Skills, and Synapses," NBER Working Papers 14064, National Bureau of Economic Research, Inc.
  3. Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
  4. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  5. Jean Tirole & Roland Benabou, 2004. "Belief in a Just World and Redistributive Politics," 2004 Meeting Papers, Society for Economic Dynamics 15, Society for Economic Dynamics.
  6. Alberto Alesina & Eliana La Ferrara, . "Preferences for Redistribution in the Land of Opportunities," Working Papers 178, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  7. Di Tella, Rafael & Alesina, Alberto & MacCulloch, Robert, 2004. "Inequality and Happiness: Are Europeans and Americans Different?," Scholarly Articles 4553007, Harvard University Department of Economics.
  8. Alberto Alesina & Guido Cozzi & Noemi Mantovan, 2009. "The Evolution of Ideology, Fairness and Redistribution," Working Papers, Durham University Business School 2009_05, Durham University Business School.
  9. Alesina, Alberto & Giuliano, Paola, 2009. "Preferences for Redistribution," IZA Discussion Papers 4056, Institute for the Study of Labor (IZA).
  10. Alesina, Alberto & Angeletos, George-Marios, 2005. "Corruption, inequality, and fairness," Journal of Monetary Economics, Elsevier, Elsevier, vol. 52(7), pages 1227-1244, October.
  11. Karabarbounis, Loukas, 2010. "One dollar, one vote," MPRA Paper 25274, University Library of Munich, Germany.
  12. Piketty, Thomas, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 551-84, August.
  13. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, Elsevier, vol. 82(2), pages 225-246, November.
  14. Lindbeck, Assar & Weibull, Jorgen W., 1993. "A model of political equilibrium in a representative democracy," Journal of Public Economics, Elsevier, Elsevier, vol. 51(2), pages 195-209, June.
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  17. Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(4), pages 755-76, October.
  18. Rafael Di Tella & Juan Dubra, 2010. "A note on Fairness and Redistribution," Harvard Business School Working Papers, Harvard Business School 11-059, Harvard Business School.
  19. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  20. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality In The United States, 1913-1998," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(1), pages 1-39, February.
  21. Aghion, Philippe & Bolton, Patrick, 1997. "A Theory of Trickle-Down Growth and Development," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(2), pages 151-72, April.
  22. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, Springer, vol. 52(3), pages 273-297, January.
  23. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  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, 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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Citations

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
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. 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.
  2. Alberto Alesina & Guido Cozzi & Noemi Mantovan, 2012. "The Evolution of Ideology, Fairness and Redistribution," Working Papers, Durham University Business School 2012_05, Durham University Business School.
  3. Alesina, Alberto F. & Algan, Yann & Cahuc, Pierre & Giuliano, Paola, 2010. "Family Values and the Regulation of Labor," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7688, C.E.P.R. Discussion Papers.
  4. Rafael Di Tella & Juan Dubra, 2013. "Fairness and Redistribution, a comment," Documentos de Trabajo/Working Papers, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo. 1302, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
  5. Ooghe, Erwin & Peichl, Andreas, 2014. "Fair and efficent taxation under partial control," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 14-002, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. 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).
  7. 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).
  8. Francesco Forte, 2012. "The New Macro Political Economy of Alberto Alesina," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 40(4), pages 417-428, December.
  9. 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.
  10. Bruno Martorano, 2012. "The Impact of Uruguay’s 2007 Tax Reform on Equity and Efficiency," Working Papers - Economics, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa wp2012_06.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  11. Alberto Alesina & Paola Giuliano, 2013. "Culture and Institutions," NBER Working Papers 19750, National Bureau of Economic Research, Inc.
  12. Erik SCHOKKAERT & Tom TRUYTS, 2014. "Preferences for redistribution and social structure," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische Studiën ces14.01, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  13. Rafael Di Tella & Juan Dubra, 2010. "A note on Fairness and Redistribution," Harvard Business School Working Papers, Harvard Business School 11-059, Harvard Business School.
  14. Guido Cozzi & Fabio Privileggi, 2009. "The fractal nature of inequality in a fast growing world: new version," Working Papers, Business School - Economics, University of Glasgow 2009_30, Business School - Economics, University of Glasgow.

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