Risk Aversion and Social Mobility: The Impossibility of Order-Pre-Serving Income Redistributions
12 Pages Posted: 2 Apr 2001
Date Written: July 2000
The traditional criticism notwithstanding, we show that social mobility can, in principle, explain political income redistributions. Nonetheless, the social-mobility argument for redistribution is not satisfactory, as actual transition probabilities are not consistent with order-preserving redistributions.
Keywords: Political economy, social mobility, income redistribution
JEL Classification: D31, D72, D81, H20
Suggested Citation: Suggested Citation