The New Economics of Inequality and Redistribution (Federico Caffè Lectures)

Economists warn that policies to level the economic playing field come with a hefty price tag. But this so-called 'equality-efficiency trade-off' has proven difficult to document. The data suggest, instead, that the extraordinary levels of economic inequality now experienced in many economies are detrimental to the economy. Moreover, recent economic experiments and other evidence confirm that most citizens are committed to fairness and are willing to sacrifice to help those less fortunate than themselves. Incorporating the latest results from behavioral economics and the new microeconomics of credit and labor markets, Bowles shows that escalating economic disparity is not the unavoidable price of progress. Rather it is policy choice - often a very costly one. Here drawing on his experience both as a policy advisor and an academic economist, he offers an alternative direction, a novel and optimistic account of a more just and better working economy. Cover......Page 1 The New Economics of Inequality and Redistribution......Page 3 Series Editor......Page 4 Title......Page 5 Copyright......Page 6 Dedication......Page 7 Contents......Page 9 Figures......Page 10 Table......Page 11 Preface......Page 13 1: The new economics of inequality and redistribution......Page 21 Inequality, institutions, and economic performance......Page 22 Market failures and state failures......Page 35 Is equality passé?......Page 40 Conflict and co-ordination......Page 46 Conclusion......Page 53 2: The economic cost of wealth inequality......Page 54 Credit constraints: evidence......Page 59 Borrowers and lenders......Page 62 Wealth constraints and credit-market exclusion......Page 70 Risk aversion, ownership, and allocative efficiency......Page 79 Conclusion......Page 90 3: Feasible egalitarianism in a competitive world......Page 93 Globalization......Page 97 Increasing wages and employment......Page 103 Asset-based redistribution......Page 110 Policies......Page 114 Conclusion......Page 117 4: Globalization, cultural standardization, and the politics of social insurance......Page 121 Globalization: the highest stage of nationalism?......Page 123 Cosmopolitans and provincials......Page 127 The politics of insurance......Page 130 Globalism vs. the welfare state?......Page 135 Globalization and institutional convergence......Page 138 Optimal specialization?......Page 141 Cultural diversity and egalitarian redistribution......Page 142 Conclusion......Page 149 5: Reciprocity, altruism, and the politics of redistribution......Page 151 The origins of strong reciprocity......Page 157 Experimental evidence......Page 160 Survey evidence......Page 165 Strong reciprocity and the welfare state: unhappy marriage?......Page 173 Conclusion......Page 176 6: Conclusion: The new (not so dismal) science of inequality and redistribution......Page 179 The model and notation......Page 184 The no-shirking wage......Page 185 Appendix to Chapter 4......Page 186 Table 5.1......Page 187 Support for redistribution variable from the Gallup Survey......Page 188 Works cited......Page 191 Index......Page 204 "Economists warn that policies to level the economic playing field come with a hefty price tag. But this so-called 'equality-efficiency trade-off' - has proven difficult to document. The data suggest, instead, that the extraordinary levels of economic inequality now experienced in many economies are detrimental to the economy. Moreover, recent economic experiments and other evidence confirm that most citizens are committed to fairness and are willing to sacrifice to help those less fortunate than themselves. Incorporating the latest results from behavioral economics and the new microeconomics of credit and labor markets, Bowles shows that escalating economic disparity is not the unavoidable price of progress. Rather it is policy choice - often a very costly one. Here drawing on his experience both as a policy advisor and an academic economist, Samuel Bowles offers an alternative direction, a novel and optimistic account of a more just and better working economy"-- "The New Economics of Inequality and Redistribution Economists warn that policies to level the economic playing field come with a hefty price tag. But this so-called "equality-efficiency trade-off" - has proven difficult to document. The data suggest, instead, that the extraordinary levels of economic inequality now experienced in many economies are detrimental to the economy. Moreover, recent economic experiments and other evidence confirm that most citizens are committed to fairness and are willing to sacrifice to help those less fortunate than themselves. Incorporating the latest results from behavioural economics, the new microeconomics of credit and labor markets, Bowles shows that escalating economic disparity is not the unavoidable price of progress. Rather it is policy choice - often a very costly one"-- Economists Warn That Policies To Level The Economic Playing Field Come With A Hefty Price Tag. But This So-called 'equality-efficiency Trade-off' - Has Proven Difficult To Document. The Data Suggest, Instead, That The Extraordinary Levels Of Economic Inequality Now Experienced In Many Economies Are Detrimental To The Economy. Moreover, Recent Economic Experiments And Other Evidence Confirm That Most Citizens Are Committed To Fairness And Are Willing To Sacrifice To Help Those Less Fortunate Than Themselves. Incorporating The Latest Results From Behavioral Economics And The New Microeconomics Of Credit And Labor Markets, Bowles Shows That Escalating Economic Disparity Is Not The Unavoidable Price Of Progress. Rather It Is Policy Choice - Often A Very Costly One. Here Drawing On His Experience Both As A Policy Advisor And An Academic Economist, Samuel Bowles Offers An Alternative Direction, A Novel And Optimistic Account Of A More Just And Better Working Economy-- 1. The New Economics Of Inequality And Redistribution -- 2. The Economic Cost Of Wealth Inequality -- 3. Feasible Egalitarianism In A Competitive World -- 4. Globalization, Cultural Strandardization, And The Politics Of Social Insurance -- 5. Reciprocity, Altruism, And The Politics Of Redistribution -- 6. Conclusion: The New (not So Dismal) Science Of Ineuqlity And Redistribution. Samuel Bowles In Collaboration With Christina Fong, Herbert Gintis, Arjun Jayadev, And Ugo Pagano. Includes Bibliographical References (pages 171-183) And Index. "Economists warn that policies to level the economic playing field come with a hefty price tag. But this so-called 'equality-efficiency trade-off' - has proven difficult to document. The data suggest, instead, that the extraordinary levels of economic inequality now experienced in many economies are detrimental to the economy. Moreover, recent economic experiments and other evidence confirm that most citizens are committed to fairness and are willing to sacrifice to help those less fortunate than themselves. Incorporating the latest results from behavioral economics and the new microeconomics of credit and labor markets, Bowles shows that escalating economic disparity is not the unavoidable price of progress. Rather it is policy choice - often a very costly one. Here drawing on his experience both as a policy advisor and an academic economist, Samuel Bowles offers an alternative direction, a novel and optimistic account of a more just and better working economy"-- Provided by publisher Machine generated contents note: List of figures; List of tables; Preface; 1. The new economics of inequality and redistribution; 2. The economic cost of wealth inequality; 3. Feasible egalitarianism in a competitive world; 4. Cosmopolitans, parochials and the politics of social insurance; 5. Altruism, reciprocity, and the politics of egalitarian redistribution; 6. Conclusion; Appendices; Works cited; Index. A novel and optimistic account of the possibility of a more just economy