Policies to redistribute income between high- and low-income groups are well known to distort factor supply decisions and thereby to generate deadweight losses incidental to income redistribution. This paper examines the effects that these same distortions may also have on factor supplies themselves, and thus on the implied patterns of production and international trade.
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Paper provided by Research Seminar in International Economics, University of Michigan in its series Working Papers with number
405.
Find related papers by JEL classification: F11 - International Economics - - Trade - - - Neoclassical Models of Trade D33 - Microeconomics - - Distribution - - - Factor Income Distribution
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