Arbeitspapier
Distribution of wealth and interdependent preferences
We examine the socially optimal wealth distribution in a two-person two-good model with heterogeneous workers and asymmetric social interactions where only one (social) individual derives positive or negative utility from the leisure of the other (non-social) individual. We show that the interdependence can effectively counter-act the need to transfer wealth to low-wage individuals and may require them to be poorer by all objective measures. We demonstrate that in the presence of social interactions it can be socially desirable to keep substantial wealth inequality.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 3684
- Classification
-
Wirtschaft
Personal Income, Wealth, and Their Distributions
- Subject
-
Wealth inequality
earnings inequality
social welfare
social interactions
Vermögensverteilung
Einkommensverteilung
Soziale Beziehungen
Wohlfahrtseffekt
Soziale Wohlfahrtsfunktion
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Grodner, Andrew
Kniesner, Thomas J.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2008
- Handle
- URN
-
urn:nbn:de:101:1-2008100821
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Grodner, Andrew
- Kniesner, Thomas J.
- Institute for the Study of Labor (IZA)
Time of origin
- 2008
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