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Redistribution and fairness: a note
Authors:Vincenzo Galasso  
Institution:IGIER, Università Bocconi, via Gobbi 5, 20136 Milano, Italy;CEPR, London, UK
Abstract:The introduction of (inequity adverse) fair agents in a simple redistributive voting game reduces the political relevance of the middle class and increases the equilibrium level of redistribution. Interestingly, some of the predictions in Meltzer and Richard J. Polit. Econ. 89 (1981) 914–927] are affected: a rise in the income inequality between poor and middle class may not decrease redistribution, because of the additional support for redistribution provided by the fair agents.
Keywords:Self-centered inequity aversion  Income inequality  Median voter
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