Redistribution Policy and Social Welfare: A View from Macroeconomics

This paper evaluates the effects of redistribution policies on macroeconomic performance, income distribution and social welfare using three alternative social welfare criteria (Pareto's, Rawls' and a mixed one), and establishes the link between the above and the ruler's optimal polic...

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Autores:
Posada, Carlos Esteban
Tipo de recurso:
Fecha de publicación:
2022
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/30905
Acceso en línea:
http://hdl.handle.net/10784/30905
Palabra clave:
income distribution
income tax
subventions
interest rate
social welfare criteria
distribución del ingreso
impuestos al ingreso
subsidios
tasa de interés
criterios de bienestar social
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Acceso abierto
Description
Summary:This paper evaluates the effects of redistribution policies on macroeconomic performance, income distribution and social welfare using three alternative social welfare criteria (Pareto's, Rawls' and a mixed one), and establishes the link between the above and the ruler's optimal policy. The main conclusions are the following: 1) a negative effect of redistribution through taxation and subsidies is the increase in the interest rate; 2) as a society advances in the process of wealth redistribution, there comes a time when the ruler faces a trade-off: to maintain this process or to avoid losses in social welfare.