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The Evolution of Ideology, Fairness and Redistribution

Author

Listed:
  • Alberto Alesina

    (Harvard University)

  • Guido Cozzi

    (Durham Business School)

  • Noemi Mantovan

    (University of Glasgow)

Abstract

Ideas about what is "fair" above and beyond the individuals' position in the income ladder 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 fairness explains various observed correlations between inequality, redistribution and growth. We also show how different beliefs about fairness can keep two otherwise identical countries in different development paths for a very long time.

Suggested Citation

  • Alberto Alesina & Guido Cozzi & Noemi Mantovan, 2009. "The Evolution of Ideology, Fairness and Redistribution," Working Papers 2009_05, Durham University Business School.
  • Handle: RePEc:dur:durham:2009_05
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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