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...
- 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
- Rights
- License
- Acceso abierto
| 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. |
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