Integration, social distress, and policy formation
Oded Stark
Economics Letters, 2012, vol. 115, issue 2, 318-321
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.
Keywords: Integration of regions; Merger of populations; Revision of social space; Aggregate relative deprivation; Social distress; Policy responses (search for similar items in EconPapers)
JEL-codes: D04 D63 F55 H53 P51 (search for similar items in EconPapers)
Date: 2012
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Working Paper: Integration, social distress, and policy formation (2012) 
Working Paper: Integration, social distress, and policy formation (2012) 
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:2:p:318-321
DOI: 10.1016/j.econlet.2011.12.027
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