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Income Inequality, Redistribution and Poverty: Contrasting rational choice and behavioural perspectives

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  • Luebker, Malte
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    Abstract

    Based on the standard axiom of individual utility maximization, rational choice has postulated that higher income inequality translates into greater redistribution by shaping the median voter?s preferences. While numerous papers have tested this propositi

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2012/wp2012-044.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/44.

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    Length: 39
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2012-44

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    Keywords: income distribution; redistribution; median voter theorem; behavioural economics;

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    1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
    2. Paolo Verme, 2010. "Life Satisfaction and Income Inequality," Working Papers 2010-15, Department of Economics, Bar-Ilan University.
    3. Augustin Kwasi Fosu, 2011. "Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence," CSAE Working Paper Series 2011-07, Centre for the Study of African Economies, University of Oxford.
    4. Rainald Borck, 2005. "Voting, Inequality, and Redistribution," Discussion Papers of DIW Berlin 503, DIW Berlin, German Institute for Economic Research.
    5. Bourguignon, F. & Fournier, M. & Gurgand, M., 2000. "Fast Development with a Stable Income Distribution: Taiwan, 1979-1994," DELTA Working Papers 2000-07, DELTA (Ecole normale supérieure).
    6. Bassett, William F. & Burkett, John P. & Putterman, Louis, 1999. "Income distribution, government transfers, and the problem of unequal influence," European Journal of Political Economy, Elsevier, vol. 15(2), pages 207-228, June.
    7. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
    8. Howard White, 2001. "National and international redistribution as tools for poverty reduction," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(3), pages 343-351.
    9. Bartels, Larry, 2005. "Economic Inequality and Political Representation," Papers 08-11-2005, Princeton University, Research Program in Political Economy.
    10. Lopez, Humberto & Serven, Luis, 2006. "A normal relationship ? Poverty, growth, and inequality," Policy Research Working Paper Series 3814, The World Bank.
    11. J. Ignacio Conde-Ruiz & Paola Profeta, 2007. "The Redistributive Design of Social Security Systems," Economic Journal, Royal Economic Society, vol. 117(520), pages 686-712, 04.
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