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Policy responses to a dark side of the integration of regions and nations 31
Stark, Oded.
In this paper I study policy responses to an increase in post-merger distress. I consider the integration of regions and nations as a merger of populations which I view as a revision of social space, and I identify the effect of the merger on aggregate distress. The paper is based on the premise that the merger of groups of people alters their social landscape and their comparators. Employing a specific measure of social distress that is based on the sensing of relative deprivation, a merger increases aggregate distress: the social distress of a merged population is greater than the sum of the social distress of the constituent populations when apart. In response, policies are enacted to ensure that aggregate distress and/or that of individuals does not...
Tipo: Working Paper Palavras-chave: Merger of populations; Revision of social space; Aggregate relative deprivation; Societal distress; Policy responses; Community/Rural/Urban Development; Labor and Human Capital; D04; D63; F55; H53; P51.
Ano: 2012 URL: http://purl.umn.edu/122036
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Integration, social distress, and policy formation 31
Stark, Oded.
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...
Tipo: Working Paper Palavras-chave: Integration of regions; Merger of populations; Revision of social space; Aggregate relative deprivation; Social distress; Policy responses; Community/Rural/Urban Development; International Relations/Trade; D04; D63; F55; H53; P51.
Ano: 2012 URL: http://purl.umn.edu/120179
Registros recuperados: 2
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