Corresponding author: Guido Cozzi, Durham Business School, University of Durham, Mill Hill Lane, Durham DH1 3LB, UK. Email: email@example.com.
The Evolution of Ideology, Fairness and Redistribution*
Version of Record online: 3 SEP 2012
© 2012 The Author(s). The Economic Journal © 2012 Royal Economic Society
The Economic Journal
Volume 122, Issue 565, pages 1244–1261, December 2012
How to Cite
Alesina, A., Cozzi, G. and Mantovan, N. (2012), The Evolution of Ideology, Fairness and Redistribution. The Economic Journal, 122: 1244–1261. doi: 10.1111/j.1468-0297.2012.02541.x
We are grateful to participants in 2010 NBER Summer Institute, and especially Pierre Yared. The editor and an anonymous referee offered excellent comments.
- Issue online: 12 NOV 2012
- Version of Record online: 3 SEP 2012
- Accepted manuscript online: 19 MAY 2012 10:25AM EST
- Submitted: 21 January 2011 Accepted: 7 March 2012
Ideas about what is ‘fair’ 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 beliefs about fairness can keep two otherwise identical countries on different development paths for a very long time. We show how different initial conditions regarding how ‘fair’ is the same level of inequality can lead to two permanently different steady states. We also explore how bequest taxation can be an efficient way of redistributing wealth to correct ‘unfair’ past accumulation of inequality.