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The Evolution of Ideology, Fairness and Redistribution

32 Pages Posted: 22 Dec 2009 Last revised: 5 Aug 2010

Alberto F. Alesina

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

Guido Cozzi

Durham University

Noemi Mantovan

University of Wales System - Bangor University

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Date Written: December 2009

Abstract

Ideas about what is "fair" above and beyond the individual's position in the income ladder influence preferences for redistribution. We study the dynamic evolution of different economies in which redistributive policies, perceptions of fairness, inequality and growth are jointly determined. We show how including fairness explains various observed correlations 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 (December 2009). NBER Working Paper No. w15587. Available at SSRN: https://ssrn.com/abstract=1525765

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

Durham University ( email )

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Durham, Durham DH1 3HP
United Kingdom

Noemi Mantovan

University of Wales System - Bangor University ( email )

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