The Evolution of Ideology, Fairness and Redistribution

26 Pages Posted: 8 Aug 2009

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Guido Cozzi

University of St. Gallen

Noemi Mantovan

Bangor University - Bangor University

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Date Written: July 27, 2009

Abstract

Ideas about what is 'fair' above and beyond the individuals position in the income ladder determine preferences for redistribution. We study the dynamic evolution of different economies in which redistributive polices, perception of fairness, inequality and growth are jointly determined. We show how including fairness explains various observed relationship 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

Alesina, Alberto F. and Cozzi, Guido and Mantovan, Noemi, The Evolution of Ideology, Fairness and Redistribution (July 27, 2009). Harvard Institute of Economic Research Discussion Paper No. 2178, Available at SSRN: https://ssrn.com/abstract=1443380 or http://dx.doi.org/10.2139/ssrn.1443380

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Guido Cozzi

University of St. Gallen ( email )

Noemi Mantovan

Bangor University - Bangor University ( email )

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