This paper develops a joint theory of ideology and redistributive policy to account for the striking divergence found across countries in voters? attitudes about the causes of individual wealth and poverty (self-reliance or societal forces), as well as in the observed social contract (laissez-faire or welfare-state). In particular, the model sheds light on how expectations of high mobility are sustained (the ?American Dream?) and dampen the demand for redistribution. In so doing, it draws on studies by sociologists and psychologists that document the cognitive efforts often required to maintain, and pass on to one?s children, the view that hard work and sacrifices will ultimately bring a better life, that people get what they deserve, and deserve what they get. The paper thus offers a psychologically grounded but nonetheless rational politico-economic model of why people may feel a need to ?believe in a just world?; of why this need, and therefore the prevalence of the belief, may vary considerably across countries; and of its implications for redistributive policies and the stigma born by the poor.
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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number
15.
Length: Date of creation: 2004 Date of revision: Handle: RePEc:red:sed004:15
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Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Markus K. Brunnermeier & Jonathan A. Parker, 2004.
"Optimal Expectations,"
NBER Working Papers
10707, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Markus K. Brunnermeier & Jonathan A. Parker, 2002.
"Optimal Expectations,"
Working Papers
146, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
[Downloadable!]
Markus K. Brunnermeier & Jonathan A. Parker, 2005.
"Optimal Expectations,"
American Economic Review,
American Economic Association, vol. 95(4), pages 1092-1118, September.
[Downloadable!]
John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2001.
"The Survival of the Welfare State,"
Economics Working Papers
603, Department of Economics and Business, Universitat Pompeu Fabra.
[Downloadable!]
Other versions:
Hassler, John & Mora, Jose & Storesletten, Kjetil & Zilibotti, Fabrizio, 2002.
"The Survival of the Welfare State,"
Seminar Papers
704, Stockholm University, Institute for International Economic Studies.
[Downloadable!]
John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Abrizio Zilibotti, 2003.
"The Survival of the Welfare State,"
American Economic Review,
American Economic Association, vol. 93(1), pages 87-112, March.
[Downloadable!]
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.