scholarly journals An Adverse Social Welfare Consequence of a Rich-To-Poor Income Transfer: A Relative Deprivation Approach

Author(s):  
Oded Stark ◽  
Grzegorz Kosiorowski ◽  
Marcin Jakubek
Argumentum ◽  
2016 ◽  
Vol 8 (2) ◽  
pp. 64-72
Author(s):  
Janaina Albuquerque de Camargo Schmidt

Este trabalho apresenta uma reflexão sobre a Política de Assistência Social no contexto atual, salientando suas principais tendências na contemporaneidade, a partir da leitura do orçamento público da União. Para tanto, realizou-se pesquisa bibliográfica em autores que discutem criticamente a temática, bem como pesquisa em base de dados sobre o orçamento público federal. As análises apontam que a Política de Assistência Social e seu arcabouço institucional com o Sistema Único de Assistência Social – SUAS, voltam-se às ações focalizadas de combate à pobreza, por intermédio dos programas de transferência de renda, o que gera fragilidades ao processo de implementação do SUAS, na perspectiva da configuração de sua função protetiva, tendo em vista uma gestão voltada à garantia dos direitos sociais de forma ampla e ao aprimoramento dos serviços socioassistenciais.


Author(s):  
Ramprasad Sengupta

Chapter 2 focuses on the indicators of social sustainability basing alternatively on absolute or relative deprivation of people’s opportunities of consumption, or on the extent of attainment of human capability, enabling people to access a decent life. It has traced the relationship between deprivation—in both absolute and relative sense—and social tension conceived as social welfare loss according to some social welfare function, which underlies any indicator of development. After reviewing briefly the comparative state of inequality-adjusted level of development across developing countries, the chapter focussed on the analysis of the state of poverty, inequality, and measure of social tension (based on poverty gap or Gini coefficient) for the rural and urban sectors separately using the Indian state-level data to assess the state of social sustainability of the Indian economic system.


2000 ◽  
Vol 1 (2) ◽  
pp. 131-143 ◽  
Author(s):  
Oded Stark ◽  

Abstract We model migration as a response to relative deprivation. We present a specific configuration of incomes in which the process of migration in response to relative deprivation reaches a steady state. However, for the general configuration of incomes we show that it is impossible to prove the existence of a steady state. We study the social welfare implications of the two cases and show that if individuals are left to pursue their betterment, the resulting state falls short of the best social outcome. We present several implications of the model including federalism and the demand for secession.


Humanomics ◽  
2014 ◽  
Vol 30 (4) ◽  
pp. 304-324 ◽  
Author(s):  
Necati Aydin

Purpose – This paper aims to compare Pareto optimality for altruistic and individualistic societies to show whether it is possible to have Pareto improvement through altruistic acts even after free market equilibrium. Design/methodology/approach – The paper follows conceptual, axiomatic and theoretical approaches to show Pareto efficiency in altruistic versus individualistic societies. The paper first outlines the welfare axioms of Islamic economics compared to those of capitalism. Second, it defines Pareto efficiency within capitalist and Islamic economic systems. Third, it compares and contrasts the concept in the two systems based on their epistemological and anthropological worldviews. Fourth, it shows how – even under the efficient allocation of material goods – room for Pareto improvement still exists through the redistribution of resources. Finally, it demonstrates optimum income transfer for social welfare maximization. Findings – The paper shows that Islamic economics relying on certain welfare axioms aim for an altruistic society. It then theoretically proves that social well-being would be greater in such an altruistic society in comparison to an individualistic society promoted by capitalism, holding everything else constant. The paper clearly shows that free market equilibrium does not maximize social utility. It theoretically demonstrates that even under efficient allocation of material goods, there is still room for Pareto improvement through redistribution of resources. It reveals that optimum income transfer might not be possible through voluntary altruistic behaviors unless people transcend self-interest and begin to value social interest as important as their own interest. Therefore, the paper suggests a role for the government to reach optimum-level income transfer for social welfare maximization. Research limitations/implications – The paper is purely theoretical. Its main limitation is not to be empirically tested. Future studies might shed light on the issue through empirical evidence Practical implications – Pareto improvement provides important guidance or at least moral justification for welfare programs. The paper might directly affect welfare policy of Muslim countries. Social implications – The paper suggests income transfer through altruistic acts would provide higher social welfare. Therefore, it is in the best interest of nations to promote altruistic behaviors and support voluntary welfare programs for higher social utility. Originality/value – The paper contributes to the Islamic moral economy doctrine by proving that altruistic behaviors encouraged by Islamic teaching could provide higher social welfare.


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