IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2010y2010i6id764p805-813.html
   My bibliography  Save this article

Může přerozdělování posílit konkurenceschopnost ekonomiky?
[Can Redistribution Enhance the Competitiveness of an Economy?]

Author

Listed:
  • Petr Gočev

Abstract

The article contests an argument that the creation of a capital market in educational "human capital" and subsequent voluntary transactions on this market are sufficient to create equal opportunities in education, consequently reducing the income premium enjoyed by households with higher initial wealth endowment end eliminating deadweight detriments to efficiency caused by unequal household budget constraints. The counterargument is based on game-theoretical model developed in Bowles 2004. The inevitable incompleteness of contracts results in allocation inefficiency: agents with above average wealth endowment are able to finance larger projects, and/or projects of worse than average quality, while agents with insufficient initial wealth endowment are excluded from the financial market. This inefficiency can be attenuated only by redistribution enforced by the government. The article concludes with a discussion of the general relationship between equality (redistribution) and efficiency.

Suggested Citation

  • Petr Gočev, 2010. "Může přerozdělování posílit konkurenceschopnost ekonomiky? [Can Redistribution Enhance the Competitiveness of an Economy?]," Politická ekonomie, Prague University of Economics and Business, vol. 2010(6), pages 805-813.
    • Handle: RePEc:prg:jnlpol:v:2010:y:2010:i:6:id:764:p:805-813
    DOI: 10.18267/j.polek.764
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.764.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.764.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.764?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    competitiveness; efficiency; incomplete contracts; Moral hazard; equality; motivation; redistribution;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2010:y:2010:i:6:id:764:p:805-813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.