2013

Identity and Redistribution

Reprint No. 2013:22

Author(s): Erik Lindqvist and Robert ÖstlingYear: 2013 Title: Public Choice Volume (No.): 155 (3-4) Pages: 469–491
Online article (restrictions may apply)
Preliminary version


This paper models the interaction between individuals’ identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibria. The model is applied to ethnicity and social class. In an equilibrium with high taxes, the poor identify as poor and favor high taxes. In an equilibrium with low taxes, at least some of the poor identify with their ethnic group and favor low taxes. The model predicts that redistribution is highest when society is ethnically homogeneous, but the effect of ethnic diversity on redistribution is not necessarily monotonic.


Reference:
Lindqvist, Erik and Robert Östling (2013), "Identity and Redistribution". Public Choice 155(3-4), 469–491.

Erik Lindqvist

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