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| Author: | Kopczuk, W. Slemrod, J. Yitzhaki, S. |
| Title: | The limitations of decentralized world redistribution: an optimal taxation approach |
| Journal: | European Economic Review
2005 : MAY, VOL. 48:4, p. 1051-1079 |
| Index terms: | Inequality Aid USA |
| Freeterms: | Redistribution |
| Language: | eng |
| Abstract: | There are two factors, why the United States and other developed countries may not want to raise their foreign aid. Firstly, the citizens of rich countries may place a low value on the welfare of the citizens of poor countries. Secondly, it may be expected that a big fraction of cross-borders transfers is wasted. This article adopts the idea that the rationale for redistribution is the pursuit of social justice, and provides a simulation of redistribution policy, where a decentralized system without cross-country transfers only slightly budges the world Gini coefficient of consumption. |
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