Revealed (or Imposed) Social Preferences for Equality and Growth
Using the Kuznets' inverted-U-shaped association as a structural constraint, we model the social tradeoff between changing inequality and changing income. Observed outcomes are thought of as attempts to find a constrained political-economic optimum. This model implies estimates of the parameters of a social welfare function. Our results suggest that the world is becoming an anti-egalitarian place. An extension of the model links this finding to religious heritage, exchange rate instability, and, surprisingly, to increased gender equality.
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|Date of creation:||2003|
|Date of revision:|
|Publication status:||Published in Journal of Income Distribution, March 2008, 17(1), pp.21-33.|
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Web page: http://economics.utah.edu
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CEMA Working Papers
512, China Economics and Management Academy, Central University of Finance and Economics.
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