Arbeitspapier
Income inequality, redistribution and poverty: Contrasting rational choice and behavioural perspectives
Based on the standard axiom of individual utility maximization, rational choice has postulated that higher income inequality translates into greater redistribution by shaping the median voter's preferences. While numerous papers have tested this proposition, the literature has remained divided over the appropriate measure for redistribution. Revisiting the original contribution by Meltzer and Richard, the present paper argues that the median voter hypothesis implies that relative redistribution should increase in line with inequality. An empirical test based on 110 observations from the Luxembourg Income Study fails to find any support for the hypothesis. By contrast, voters' actual preferences offer a better guide to understanding redistributive outcomes. The findings challenge the narrow concept of human motivation that underpins rational choice, and point to the importance of fairness orientations that have been emphasized in behavioural economics.
- ISBN
-
978-92-9230-507-9
- Sprache
-
Englisch
- Erschienen in
-
Series: WIDER Working Paper ; No. 2012/44
- Klassifikation
-
Wirtschaft
Personal Income, Wealth, and Their Distributions
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Social Security and Public Pensions
- Thema
-
income distribution
redistribution
median voter theorem
behavioural economics
Einkommensverteilung
Eigeninteresse
Rationales Verhalten
Einkommensumverteilung
Medianwähler-Modell
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Luebker, Malte
- Ereignis
-
Veröffentlichung
- (wer)
-
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
- (wo)
-
Helsinki
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Luebker, Malte
- The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Entstanden
- 2012
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