Social Cohesion and Optimal Redistribution in Economies with Long-Run Growth

ResearchSpace Repository

Show simple item record

dc.contributor.author Bandyopadhyay, Debasis en
dc.contributor.author Tang, X en
dc.date.accessioned 2020-04-15T00:47:02Z en
dc.date.issued 2018 en
dc.identifier.uri http://hdl.handle.net/2292/50389 en
dc.description.abstract We suggest that as social cohesion improves, the macroeconomic gains from progressive redistribution decline. Social interactions facilitate diffusion of nonrival knowledge. The consequent bridging of the knowledge gaps makes learning cheaper for children with limited access to adults with high human capital and thereby lowers the optimal progressivity for a redistributive policy. If social cohesion exceeds a critical threshold then zero progressivity would be optimal. Numerically, a country with greater social cohesion finds smaller gains in growth, efficiency, and welfare from progressive redistribution over and above the gains from a Pigouvian subsidy that eliminates the inefficiency caused by knowledge externalities. en
dc.publisher American University of Sharjah en
dc.relation.ispartofseries School of Business Administration Working Paper Series en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title Social Cohesion and Optimal Redistribution in Economies with Long-Run Growth en
dc.type Report en
dc.rights.holder Copyright: The author en
pubs.author-url http://hdl.handle.net/11073/9184 en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Working Paper en
pubs.elements-id 773662 en
pubs.org-id Business and Economics en
pubs.org-id Economics en
pubs.number SBAWPS: 01-02/2018 en
pubs.record-created-at-source-date 2019-06-04 en


Files in this item

Find Full text

This item appears in the following Collection(s)

Show simple item record

Share

Search ResearchSpace


Advanced Search

Browse

Statistics