UZH-Logo

Maintenance Infos

Social instability and redistribution of income


Falkinger, Josef (1999). Social instability and redistribution of income. European Journal of Political Economy, 15(1):35-51.

Abstract

Rational agents can express discontent with a given distribution of income by threatening to disrupt an economy, if such a threat is profitable. This paper describes such circumstances in a two-class model. Social stability constraints define the acceptable set of income distributions, the range of which is determined by the extent to which income-generating abilities are vulnerable to disruption. Opportunities for disruption vary across stages of economic development. There is possibly no stable distribution in a low developed economy, whereas in an advanced economy, characterized by complex and interdependent production, stable distributions exist. This distinction provides a basis for the observed increasing significance of social stabilization by redistributive policy in the course of economic development.

Rational agents can express discontent with a given distribution of income by threatening to disrupt an economy, if such a threat is profitable. This paper describes such circumstances in a two-class model. Social stability constraints define the acceptable set of income distributions, the range of which is determined by the extent to which income-generating abilities are vulnerable to disruption. Opportunities for disruption vary across stages of economic development. There is possibly no stable distribution in a low developed economy, whereas in an advanced economy, characterized by complex and interdependent production, stable distributions exist. This distinction provides a basis for the observed increasing significance of social stabilization by redistributive policy in the course of economic development.

Citations

Altmetrics

Downloads

170 downloads since deposited on 11 Feb 2008
31 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:24 March 1999
Deposited On:11 Feb 2008 12:21
Last Modified:05 Apr 2016 12:17
Publisher:Elsevier
ISSN:0176-2680
Publisher DOI:10.1016/S0176-2680(98)00039-1
Permanent URL: http://doi.org/10.5167/uzh-1209

Download

[img]
Preview
Content: Published Version
Filetype: PDF
Size: 1MB
View at publisher

TrendTerms

TrendTerms displays relevant terms of the abstract of this publication and related documents on a map. The terms and their relations were extracted from ZORA using word statistics. Their timelines are taken from ZORA as well. The bubble size of a term is proportional to the number of documents where the term occurs. Red, orange, yellow and green colors are used for terms that occur in the current document; red indicates high interlinkedness of a term with other terms, orange, yellow and green decreasing interlinkedness. Blue is used for terms that have a relation with the terms in this document, but occur in other documents.
You can navigate and zoom the map. Mouse-hovering a term displays its timeline, clicking it yields the associated documents.

Author Collaborations