Integration, social distress, and policy formation

Oded Stark*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people's social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger levels.

Original languageEnglish
Pages (from-to)318-321
Number of pages4
JournalEconomics Letters
Volume115
Issue number2
DOIs
StatePublished - May 2012
Externally publishedYes

Keywords

  • Aggregate relative deprivation
  • Integration of regions
  • Merger of populations
  • Policy responses
  • Revision of social space
  • Social distress

Fingerprint

Dive into the research topics of 'Integration, social distress, and policy formation'. Together they form a unique fingerprint.

Cite this