Changing Social Contracts: Beliefs and Dissipative Inclusion in Brazil
Lee Alston,
Marcus Melo,
Bernardo Mueller and
Carlos Pereira ()
No 18588, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
Social contracts about inequality and redistribution are country-specific. We rely on a model of inequality and redistribution where multiple steady states can emerge in given country. We link the model to the recent literature on beliefs and argue that beliefs are a major determinant of which equilibrium results. We show that changes in beliefs may shift the equilibrium in a country over time. We present evidence that beliefs are typically very stable over time, yet argue that Brazil has recently undergone a dramatic shift in beliefs which we show is associated with a change in the country's social contract in the past thirty years. The transition from one social contract to another has taken place through a process which we call 'dissipative inclusion', where redistribution and social inclusion are effectively achieved but accompanied by distortions, inefficiencies and rent dissipation.
JEL-codes: O10 O43 P51 (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-lam
Note: DAE DEV POL
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)
Published as Alston, Lee J. & Melo, Marcus Andre & Mueller, Bernardo & Pereira, Carlos, 2013. "Changing social contracts: Beliefs and dissipative inclusion in Brazil," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 48-65.
Downloads: (external link)
http://www.nber.org/papers/w18588.pdf (application/pdf)
Related works:
Working Paper: CHANGING SOCIAL CONTRACTS: BELIEFS ANDDISSIPATIVE INCLUSION IN BRAZIL (2014) 
Journal Article: Changing social contracts: Beliefs and dissipative inclusion in Brazil (2013) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:18588
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18588
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().