Authors:

  • Alberto Alesina

Excerpt

Fairness and Redistribution: Reply. Alberto Alesina, 2013, Paper. "The key contribution of Alesina and Angeletos (2005)—henceforth, AA—is to show how fairness considerations open the door to multiple equilibria in the level of taxation and redistribution. At the heart of their results is the dependence of the equilibrium tax rate on the “signal-to-noise” ratio in income inequality: the higher the fraction of income that is due to effort and talent (the “signal”) rather than luck (the “noise”), the lower the social demand for redistribution..."  Link verified March 28, 2014