Income Redistribution Research Articles

Anti-Inflation Policies in the Evolution of Federico Caffè’s Economic Thought

ABSTRACT Against the background of an analysis of the inflation characterized by distributional conflicts, Caffè proposes in the 1950s and 1960s the establishment of a ‘complex treaty' to regulate industrial relations, which should include, inter alia, price controls and wage policies. Intersecting his scarcely investigated analyses in the 1970s and in the 1980s on Robinson's (1972) The Second Crisis of Economic Theory, Minsky's (1975) John Maynard Keynes and Burchardt et al. (1944) The Economics of Full Employment, the paper shows an evolution in Caffè’s elaboration from the period of the stagflation crisis onward. The paper shows that his analyses about the coexistence of full employment and price stability began to emphasize the re-articulation of the production structure through targeted public investments. Moreover, Caffè suggests the possibility of using controls on international trade, the localization of industries and the regulation of private investment. Finally, Caffè changed his position on wage moderation policies, rejecting their use. Caffè's analysis during the 1970s-80s marks a radical alternative to the return of unemployment and the redistribution of income to the detriment of labor.

Prosocial Phenotype Predicts Political Views on Hierarchy and Redistribution 18 Months Later

Cross-sectional research has identified robust correlations between prosocial behavior in economic games and political views, but this research is limited in its ability to draw causal inferences. Here, we conducted a longitudinal cross-lagged panel study of prosociality and political views with a New Zealand sample ( n = 631). Across two waves separated by 18 months, we measured self-reported political views and employed a battery of economic games to estimate people’s general preferences for prosociality. We found that this “prosocial phenotype” predicted future variation in some of our measures of political views, including Social Dominance Orientation and support for income redistribution. Income attribution beliefs and political party support were not consistently related to the prosocial phenotype over time. None of these variables predicted future variation in the prosocial phenotype. These results suggest that prosocial predispositions may play a causal role in the expression of certain political views.

Attitudes towards the inheritance tax: paradoxical thinking and misinformation / Actitudes hacia el impuesto sobre sucesiones: pensamiento paradójico y desinformación

The detrimental effects of inequality have been demonstrated. However, although tax-based wealth redistribution can reduce it, part of the population rejects them due to partially inaccurate and erroneous beliefs disseminated through misinformation campaigns. This research explores the mechanisms that explain the opposition to the inheritance tax, a controversial tax figure. Through an experimental study, we analysed whether exposing anti-tax participants (37.8% women, Mage = 39.65, SDage = 14.27) to an exaggerated and absurd message aligned with their tax beliefs — paradoxical thinking strategy — influenced participants’ perceptions and behavioural intentions. Contrary to predictions from paradoxical thinking, the results revealed that participants exposed to the paradoxical thinking message exhibited more extreme anti-tax beliefs and behavioural dispositions than those who received a control message. Furthermore, participants who perceived the sender as trustworthy polarized their position against the tax. These results highlight the factors contributing to the rejection of certain redistributive policies, expose the detrimental impact of misinformation campaigns, question the applicability of paradoxical thinking in some contexts and emphasize the influence of perceived credibility on message acceptance.

Influential Theories of Economics in Shaping Sustainable Development Concepts

This study explores the pivotal role of theories of economics in shaping the multifaceted concept of sustainable development and integrates economic, social, and environmental dimensions. It traces the intellectual trajectory of classical, neoclassical, and contemporary economic paradigms, analysing their contributions to sustainability-oriented policies and practices. The study critically analyses key concepts, including equitable income redistribution, resource stewardship, and ecological preservation. It contrasts liberal and dependency theories while also comparing insights from environmental and ecological economics. Employing a rigorous literature review and comparative analytical methodology, the study bridges the theoretical foundations with real-world applications, illustrating the dynamic interplay between theories of economics and sustainability imperatives. The findings elucidate the dichotomy between weak and strong sustainability frameworks, advocating for ethical and interdisciplinary approaches to policymaking. By offering a comprehensive synthesis of the most influential theories of economics and sustainable development practices, this study provides profound insights for policymakers, academics, and practitioners seeking to address pressing global challenges through informed and integrative strategies.

DESENVOLVIMENTO HUMANO: UMA ANÁLISE FUNDAMENTADA EM KARL MARX, PIKETTY E LUDWIG VON MISES

This article examines the contemporary debate on income redistribution and economic freedom through the theoretical contributions of Thomas Piketty and Ludwig von Mises. The topic transcends academic boundaries, involving public discourse and fostering critical reflections essential for building democratic and equitable societies. The study aims to deepen the understanding of Piketty's proposals, particularly redistributive policies and progressive taxation, and analyze the practical challenges of their implementation. It also investigates Mises' praxeology, highlighting economic freedom as a cornerstone of human development. Adopting a qualitative and exploratory approach, the research is based on bibliographic sources and comparative analytical methods. The findings reveal that both authors agree on the critical role of economic development in promoting social equity, but their approaches diverge. Piketty emphasizes redistributive measures, such as progressive taxation, while Mises highlights the efficiency and cooperation fostered by free markets. The conclusion emphasizes the dynamic and ongoing relevance of this intellectual debate. The study demonstrates that integrating the perspectives of Piketty and Mises can guide the formulation of balanced public policies that promote both social justice and economic dynamism.

Telangana and the limits of article 3 as an instrument of federal rescue and accommodation

ABSTRACT This article examines the formation of Telangana as an illustrative case to show the possibility and limits of using Article 3 of India’s Constitution as an instrument of federal rescue and accommodation of territorially concentrated groups who are at the receiving end of political marginalization and perceived oppressive rule by dominant kin ethnolinguistic groups. Drawing from the existing literature on the politics of recognition and redistribution in multinational federations, it argues that far from investing the Centre with a unilateral power to make or break States, Article 3 entails a far more complex and multilevel federal interactive process. Given that the norms, rules, and procedures of making or breaking States entailed in Article 3 are never definitive, the formation of Telangana demonstrates that State formation in India is contingent on political opportunity structures which emerge from the alignment of complex interests and agendas of multiple actors.

Tax Law Enforcement and Redistributive Policies

The Inflation Reduction Act signed by President Biden on August 16, 2022, allocated $80 billion in additional funding for the IRS. While Democrats unanimously supported the bill, not a single Republican voted in favor of it. The first legislation advanced by the new Republican majority in 2023 was to repeal this increase in IRS funding. Given the diminished state of IRS enforcement capacity, increasing the resources devoted to tax enforcement seems like an obvious imperative without a clear partisan valence. One might think that political and ideological battles would be fought over what the tax law is, not whether the IRS has the resources to enforce it. But IRS funding has become a major political point of contention. Why is tax law enforcement such a partisan issue? In this Article we propose an answer. We argue that the income tax is the primary instrument for income redistribution, and so the efficacy of tax enforcement shapes people’s support for redistribution. When the IRS makes sure people pay their taxes, support for income redistribution increases. And when the IRS is unable to enforce the nation’s tax laws, support for income redistribution decreases. Thus, for political progressives increasing tax enforcement generates a double dividend. It both provides more funds for redistribution and also increases political support for redistribution, which can then be translated into redistributive changes to the tax law. For symmetric reasons, reducing tax enforcement generates a double dividend for those who disfavor income redistribution. To support our theory, we use unique data from the General Social Survey on perceptions of tax law enforcement. We show that perceptions of tax enforcement are strongly correlated with redistributive preferences. Specifically, people who think that tax law is underenforced are less likely to support income redistribution. We find similar results when looking at specific redistributive welfare programs. To disentangle causation from correlation, we administered a national representative survey which specifically asked about the effects of increased tax law enforcement on support for redistribution. Thus, tax law enforcement does not only determine the amount of tax revenue we collect; it also shapes our redistributive preferences which in turn affects our redistributive polices. This means that as long as our political parties are divided about the desirability of income redistribution, the political battles around IRS funding and enforcement are not likely to wane.

Religious Relations and Economics Hadith Perspective

This research explores the relationship between religion and economics from an Islamic perspective, focusing on the application of hadith teachings in shaping economic practices and policies. Through a qualitative approach and hermeneutical analysis of relevant hadiths, this research examines the principles of business ethics, prohibited economic practices, production, consumption, and distribution of wealth in Islam. Its findings highlight the emphasis on honesty, transparency, and social responsibility in economic interactions, as well as the prohibition of usury and fraudulent practices. These hadiths also encourage hard work, innovation, moderation in consumption, and prioritizing halal goods. In particular, the obligation of zakat and concern for the mustadhafins (marginalized groups) underline the importance of the redistribution of wealth and social welfare in the Islamic economy. This analysis reveals a strong relationship between religious teachings and economic behavior, with hadith principles influencing individual decisions and societal practices. Furthermore, this research discusses the implications of these teachings for modern economic policy, such as the development of Islamic financial institutions, the integration of zakat in the framework of social policy, and the promotion of business ethics. The relevance of hadith teachings in responding to economic challenges and promoting a more inclusive and sustainable approach was also highlighted. This research contributes to the understanding of the interaction between religion and economics, emphasizing the potential of Islamic principles in shaping a just and prosperous economic system.

THE ECONOMIC FACTOR IN REPRESSIVE MEASURES AGAINST GERMAN COLONISTS OF THE VOLHYNIA PROVINCE DURING THE FIRST WORLD WAR

The purpose of the article is to analyze the content of the Russian government's repressive policy (with a particular focus on a specific region and the economic aspect) during the First World War and its consequences for the empire's subjects of German origin. The methodology of the study is based on the application of historiographical and source study methods, as well as tools from national and imperial studies, and economic history. The scientific novelty is that the issues of implementing the mechanism of expropriation of German colonists’ property in the Volhynia province and the inability of the authorities to utilize it rationally for the benefit of the state are revealed for the first time. Conclusions. With the outbreak of the First World War, the Russian government launched a large-scale external and internal anti-German campaign. Through propaganda, it created a hostile image of Russian citizens of German origin, thereby justifying the deprivation of their civil and property rights to the public. In the Right-Bank Ukraine, the German community of the Volhynia province suffered the most, with the majority residing in hundreds of agricultural German colonies across the region. The property and lands of approximately 150 000 – 160 000 Volhynian German colonists were sequestered, and they were deported deeper into Russia. The sequestration of property from the German colonists later transformed into an outright redistribution of wealth in favor of those who called themselves representatives of «Russian interests». The properties of the deported colonists were largely used by local authorities to house refugees from the occupied districts of the province and Galicians, as well as for the needs of the army and government structures. There were also recorded instances of unauthorized settlement of residents in the colonists’ buildings and the use of German farms for the personal interests of officials. The irrational use of the sequestered property and lands of the German community, amidst the war, further deepened the socio-economic crisis in the region. Failures in the imperial government’s policies could not be quickly overcome, even by the representatives of the Ukrainian government, which closely collaborated with the Provisional Government. By the end of 1917, the exiled Germans began returning to their destroyed houses and devastated farms, most of which were inhabited by refugees. This situation contributed to the spread of emigration sentiments among the Volhynian Germans, significantly reducing their number in the region.

On undevelopment and de‐development: A geographical critique on perpetual growth and resource‐based accumulation

AbstractEconomic development is often defined as a cycle of sustained growth adding to ever‐increasing living standards of the general population. However, in human and economic geography such an orthodox definition of development is increasingly considered problematic. Not only have cycles of lower growth, rising debt, inequality and environmental degradation challenged the foundations of post‐war prosperity. Economic development in advanced nations must also be associated with the development of underdevelopment in peripheral countries. In this essay, I therefore contend that what is otherwise defined as ‘development’ has increasingly taken the form of ‘undevelopment’, i.e., a regressive cycle of falling productivity, financialisation, rising inequality, global imbalance and irreversible climate change. Although it is difficult to change the global course of undevelopment, I argue that de‐development can develop into its logical successor. Indeed, by progressively transcending the capitalist world‐system, I conclude that a more durable global economic system can emerge where global wealth redistribution and economic activity within the planet's finite boundaries are central.

Dynamic tax evasion and growth with heterogeneous agents

AbstractWe develop a tractable model economy in which public capital improves aggregate productivity, and the taxpayers have heterogeneous evasion opportunities. By issuing bonds, compliant taxpayers supply the evaders with an instrument to hedge against auditing risks, thereby expanding their evasion capacity. The wealth share of tax evaders relates negatively to the economy’s productivity but has a hump-shaped relationship with the growth rate of aggregate capital. The fiscal policy that maximizes welfare differs from the one that maximizes tax revenues because the latter does not account for the redistribution of wealth (and risk) between compliant and evasive taxpayers.

Effect of Income-Increasing Deduction in Personal Income Tax on the Burden Reduction and Income Redistribution: Evidence from Japan

Effect of Income-Increasing Deduction in Personal Income Tax on the Burden Reduction and Income Redistribution: Evidence from Japan

To Create or to Redistribute? That is the Question

Abstract This study delves into the persistent low GDP growth observed in the post-crisis period, despite aggressive financial easing measures. It explores how economic agents allocate available funds, either through investments in new capital creation or the acquisition of existing assets for capital gains (asset redistribution). The former approach bolsters total income and employment, while the latter reshapes wealth distribution among agents. Through a combination of theoretical insights and empirical evidence, we argue that during economic downturns, investors often find it more lucrative, and lenders consider it safer, to finance the repurchasing of existing assets rather than investing in new ones. This trend not only worsens recessions but also hampers the recovery process by limiting entrepreneurs’ access to funding and altering the economy’s capital structure. Moreover, given that asset redistribution tends to benefit the wealthy, a surge in inequality fosters a cycle of income redistribution, further exacerbating economic downturns.

Safety, Belonging and Success in Education for Refugees in Europe: A Systematic Review

ABSTRACTThis systematic review aims to explore refugees' educational access, experiences and outcomes in Europe since 2015. The review follows a systematic process of reviewing and synthesising texts compiled in the Hub for Education for Refugees in Europe (HERE) Knowledge Base to fill gaps in knowledge about the educational trajectories of learners of refugee and forced migrant backgrounds who have arrived in Europe. The review includes studies that focus on all forms of educational provision and services for refugees and forced migrants in Europe: formal, non‐formal and informal. The review also takes a meta‐ethnographic approach to data analysis and synthesis. Key findings highlight the interconnectedness of safety, belonging and success in education for learners with refugee and forced migrant backgrounds and the necessity of economic redistribution, cultural recognition and political participation for achieving these goals.

A Comparative Analysis on Ecological Footprint of Consumption and Import in Premature Deindustrialized Countries

This study aims to analyze the factors influencing the ecological footprint of consumption and import as indicators of environmental degradation in premature deindustrialized countries. Using advanced Method of Moments Quantile Regression (MMQR) analysis, we examined a panel of 27 countries from 1991 to 2021. The main findings indicate that income, income inequality, and industrialization are positively correlated with the ecological footprint stemming from consumption, but an increase in the share of renewable energy consumption exhibits a mitigation effect. The ecological footprint stemming from imports, on the other hand, is exacerbated by income, industrialization, de facto trade globalization, and democracy, whereas it is negatively affected by the higher share of renewable energy consumption. Importantly, MMQR analysis reveals that the effect of each independent variable is non-linear, with the magnitude of coefficients varying across different quantiles of the ecological footprint of both consumption and import. From a policy standpoint, effective mitigation of different aspects of environmental degradation requires prioritization of income redistribution, the promotion of green industrialization, and the enhancement of renewable energy adoption, as well as careful management of trade globalization and democratic governance in premature deindustrialized countries.

Impact of family values & upbringing on sibling relationships: Moderating role of wealth inheritance

ABSTRACT Indian culture is characterized by strong family values and deep familial relationships. Sibling relationships are highly valued and play a significant role in shaping the lives of individuals in Indian families. However, this relationship can be affected by improperly transferring family wealth or differences in opinion about wealth, family values, and upbringing. Sibling relations are responsible for the emotional influence of unexpected wealth . Generational transfer of wealth has been a ritual since ancient times and has gained academic consideration due to its economic implications on family wealth and the economy. This study aims to discover the extent to which Wealth Inheritance moderates the association between Family Values & Upbringing and the factors of sibling relationships (like Alliance, Care & Affection, Antagonism, and Companionship). 350 Participants from North India (opposite gender sibling/s and inherited wealth) were identified using a cross-sectional online survey design. They were assessed for various factors such as demography, Family Values & Upbringing, Sibling Relationships and Satisfaction with Wealth Inheritance. Subsequently, Structural Equation Modelling (SEM) was employed to extract the factors and test the hypothesized associations. Further, moderation analysis was conducted to test the moderating influence of Satisfaction with Wealth Inheritance on the association between Family Values and Upbringing with Sibling Relationships. Family Values and Upbringing parameter has a positive and significant relationship with all the sibling relationship factors, i.e. Alliance, Care & Affection. Wealth Inheritance has an appreciable impact on the association of Values and Upbringing in Sibling Relationships.

Development of employee financial participation schemes in EU member states and their impact on firm performance: new evidence using European Company Surveys

ABSTRACT Employee Financial Participation (EFP) in the form of Profit Sharing (PS) and Employee Share Ownership (ESO) are now widespread in European countries. EFP is expected to have a positive effect on the employees’ engagement with, and commitment to, their firm which may result in higher productivity and better firm performance. It may also advance other public policy objectives such as employment, economic democracy and improved income redistribution. The paper focuses on two aspects: firstly, the spread of EFP schemes across European companies in the last 20 years; and secondly, the impact of EFP on the performance of firms expressed in terms of productivity and employment. We show that, firstly, the number of companies offering EFP schemes to their employees, the proportion of employees to whom EFP schemes are offered, and the proportion of employees that have taken up the offer has all increased in the majority of EU countries. Secondly, under all conditions and in all EU countries, the presence of EFP schemes increases the likelihood of a company exhibiting improvement in both labour productivity and employment. This is an important conclusion and explains the recent interest in EFP by the European Parliament and the European Commission.

The Contribution of Islamic Education in Economic and National Development in the Digital Era

Islamic education has a very significant role in encouraging economic development and strengthening the nation's character in the digital era. This research underscores the importance of integrating moral values such as honesty, justice and responsibility in the Islamic education curriculum to produce individuals who not only have extensive knowledge but are also based on high morality. Islamic economic principles, such as zakat and infaq, act as effective tools for wealth redistribution, which contribute to reducing social inequality and improving people's well-being. Apart from that, Islamic education that is adaptive to technological developments encourages innovation that supports the digital economy and the development of the halal industry. Therefore, Islamic education not only makes a significant contribution to spiritual and moral aspects, but also plays an important role in economic progress and sustainable national development.

Akuntansi Syariah dan Pengentasan Kemiskinan dalam Menciptakan Kesetaraan Sosial di Indonesia

Islamic accounting has developed as a financial method aimed at promoting social justice and people's well-being in addition to making profit. Islamic accounting has a strategic role in reducing poverty and creating social equality in Indonesia, which is the world's largest Muslim population. The study analyzed how the application of islamic accounting based on principles such as transparency, justice, and social responsibility could help reduce poverty rates in Indonesia. Through literature and secondary data analysis, the study found that islamic accounting, mainly by instruments such as zakat, wakaf, and qardhul hasan, could provide financial solutions that support poor people's economic empowerment. Islamic accounting not only serves as a accounting system, but also as a tool to help strengthen the redistribution of wealth and build an inclusive economy.

How social and environmental investments attract and repel foreign investors: Insights on shareholder and stakeholder engagement

AbstractThis study investigates the diversifying impact of social and environmental investment (SEI) to attract and repel foreign investors (FIs) while determining to invest in environmental friendly firms. By analyzing SEI strategies within the Chinese context and employing panel data regression analysis, this study reveals numerous major insights. First, firms implementing average SEI strategies tend to attract greater investments from FI. On the other hand, above average SEI do not yield similar benefits, indicating that over‐investments in social and environmental projects could repel potential investors, and result in a transfer of wealth from shareholders to stakeholders. Furthermore, the present study reveals that firm performance strengthens the positive association between average SEI and FI. Finally, this study finds that the negative relationship between above‐average SEI and FI is intensified when firm performance is considered as a moderating factor. These insights are crucial for policymakers in formulating strategies to enhance foreign investments.