Inequality, Segregation, and Redistribution
In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.
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|Date of creation:||2000|
|Date of revision:|
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- Douglas Massey, 1996. "The age of extremes: Concentrated affluence and poverty in the twenty-first century," Demography, Springer;Population Association of America (PAA), vol. 33(4), pages 395-412, November.
- Thomas Piketty, 1994.
"Social Mobility and Redistributive Politics,"
94-15, Massachusetts Institute of Technology (MIT), Department of Economics.
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- Persson, Mats, 1995. " Why Are Taxes So High in Egalitarian Societies?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 569-80, December.
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- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Sandmo, Agnar, 1976. "Optimal taxation : An introduction to the literature," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 37-54.
- Roberts, Kevin W. S., 1977. "Voting over income tax schedules," Journal of Public Economics, Elsevier, vol. 8(3), pages 329-340, December.
- 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.
- Horstmann, Ignatius J & Scharf, Kimberley, 1999. "The New Federalism: Distributional Conflict, Voluntarism and Segregation," CEPR Discussion Papers 2273, C.E.P.R. Discussion Papers.
- W.Norton Grubb, 1982. "The Dynamic Implications of the Tiebout Model: the Changing Composition of Boston Communities, 1960-1970," Public Finance Review, SAGE Publishing, vol. 10(1), pages 17-38, January.
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