Why World Redistribution Fails

  title={Why World Redistribution Fails},
  author={Wojciech Kopczuk and Joel B. Slemrod and Shlomo Yitzhaki},
An optimal linear world income tax that maximizes a border-neutral social welfare function provides a drastic reduction in world consumption inequality, dropping the Gini coefficient from 0.69 to 0.25. In contrast, an optimal decentralized (i.e., within countries) redistribution has a miniscule effect on world income inequality. Thus, the traditional public finance concern about the excess burden of redistribution cannot explain why there is so little world redistribution. Actual foreign aid is… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.


Publications referenced by this paper.
Showing 1-10 of 16 references

First Calculation Based on Household Surveys Alone,

Milanovic, Branko
“True World Income Distribution, • 2002

One - Tenth of 1 Percent to Make the World Safer

A. Paul

The Effect of Income Taxes on Household Behavior,

Auten, Gerald, Robert Carroll
Review of Economics and Statistics, • 1999

Methodological Issues in Measuring and Interpreting Taxable Income Elasticities

H. Nicholas
National Tax Journal • 1998

A Taxonomy of Multilateral Methods for Making International Comparisons of Prices and Quantities,

Hill, J Robert
Review of Income and Wealth, • 1997

The Purchasing Power Parity Puzzle,

Rogoff, Kenneth
Journal of Economic Literature, • 1996

Similar Papers

Loading similar papers…