Arbeitspapier

The cost of segregation in social networks

This paper investigates the private provision of public goods in segregated societies. While most research agrees that segregation undermines public provision, the findings are mixed for private provision: social interactions, being strong within groups and limited across groups, may either increase or impede voluntary contributions. Moreover, although efficiency concerns generally provide a rationale for government intervention, surprisingly, little light is shed in the literature on the potential effectiveness of such intervention in a segregated society. This paper first develops an index based on social interactions, which, roughly speaking, measures the welfare impact of income redistribution in an arbitrary society. It then shows that the proposed index vanishes when applied to large segregated societies, which suggests an asymptotic neutrality of redistributive policies.

Sprache
Englisch

Erschienen in
Series: Nota di Lavoro ; No. 52.2013

Klassifikation
Wirtschaft
Noncooperative Games
Personal Income, Wealth, and Their Distributions
Public Goods
Thema
Public Goods
Segregated Society
Private Provision
Networks
Bonacich Transfer Index

Ereignis
Geistige Schöpfung
(wer)
Allouch, Nizar
Ereignis
Veröffentlichung
(wer)
Fondazione Eni Enrico Mattei (FEEM)
(wo)
Milano
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Allouch, Nizar
  • Fondazione Eni Enrico Mattei (FEEM)

Entstanden

  • 2013

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