A reduction of impediments to international flows of goods, capital and professional labor is thought to raise the economic costs of programs by the nation state (and labor unions) to redistribute income to the poor and to provide economic security. But some of the more politically and economically successful examples of such policies--for example Nordic social democracy and East Asian land reform--have occurred in small open economies which would, on the above account, provide a prohibitive environment for egalitarian interventions. I present a model of globalization and redistribution to answer the following question: in a liberalized world economy, what programs of egalitarian redistribution and social insurance are implementable by democratic nation states acting independently?
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Paper provided by Brookings Institution - Working Papers in its series Papers with number
15.
Find related papers by JEL classification: D30 - Microeconomics - - Distribution - - - General D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution H80 - Public Economics - - Miscellaneous Issues - - - General F10 - International Economics - - Trade - - - General