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Inequality and club formation

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  • Jaramillo, Fernando
  • Kempf, Hubert
  • Moizeau, Fabien

Abstract

We study the relationship between social segmentation and income inequality by means of the economic theory of clubs with private provision of the club good. After having characterized the equilibrium partition of society in clubs and investigating its characteristics, we show how the clubs' sizes depend on the rate of income increase and compare segmentation profiles arising in societies characterized by different inequality patterns.
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  • Jaramillo, Fernando & Kempf, Hubert & Moizeau, Fabien, 2003. "Inequality and club formation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 931-955, May.
    • Handle: RePEc:eee:pubeco:v:87:y:2003:i:5-6:p:931-955
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    Citations

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    Cited by:

    1. Giuranno, Michele Giuseppe, 2005. "Income Inequality and the Size of the Public Sector," Economics Discussion Papers 8895, University of Essex, Department of Economics.
    2. Fernando Jaramillo & Fabien Moizeau, 2003. "Conspicuous Consumption and Social Segmentation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(1), pages 1-24, January.
    3. Gulati, Namrata & Ray, Tridip, 2016. "Inequality, neighbourhoods and welfare of the poor," Journal of Development Economics, Elsevier, vol. 122(C), pages 214-228.
    4. Hubert Kempf & Fabien Moizeau, 2009. "Inequality, Growth, and the Dynamics of Social Segmentation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(4), pages 529-564, August.
    5. Tomoo Kikuchi & Shuige Liu, 2022. "The Power of Non-Superpowers," Papers 2209.10206, arXiv.org, revised May 2024.
    6. Craig Kerr, 2017. "The effect of amenities on local wage distributions," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 215-228, July.
    7. Michele Giuseppe Giuranno, 2009. "Regional Income Disparity and the Size of the Public Sector," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 697-719, October.
    8. Fernando Jaramillo & Hubert Kempf, 2005. "On the Joint Dynamics of Inequality and Growth," 2005 Meeting Papers 638, Society for Economic Dynamics.
    9. Daniel J. Hernandez & Fernando Jaramillo & Hubert Kempf & Fabien Moizeau & Thomas Vendryes, 2023. "Limited Commitment, Social Control and Risk-Sharing Coalitions in Village Economies," Economics Working Paper Archive (University of Rennes & University of Caen) 2023-03, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    10. Chen Jiawei & Sacks Michael, 2018. "Going Along or Going Independent? A Dynamic Analysis of Nonprofit Alliances," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(2), pages 1-20, April.

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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