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But it also has "redistributive" effects.
We study alternative institutional arrangements for the determination of monetary policy in a general equilibrium model with heterogeneous agents, where monetary policy has redistributive effects.
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Economists, for example, often refer to policies as having redistributive effects when they engender a different pattern of holdings than obtained previously.
One might therefore distinguish between policies and changes in social institutions that have redistributive effects — which include the entire class of socially caused pattern changes over time — from redistributive polices — which include only those policies that are adopted (at least in part) for the reason that they will bring about such changes.
This will have a significant redistributive effect.
The Treasury Select Committee last month asked the Chancellor to provide a wider analysis of the redistributive effects of the Budget, but this has not been forthcoming as yet.
In this paper, we have provided an ex-ante evaluation on labor supply and redistributive effects of EITC and WTC in-work benefits for Italian married couples using a tax-benefit microsimulation model and a structural model of labor supply.
Start with redistributive effects.
ECONOMIST Dani Rodrik has become a bit of a bomb-thrower on issues of globalisation, but I think he makes a point in this column that is worth heeding:[W]hen we expect redistributive effects to even out in the long run, so that everyone eventually comes out ahead, we are more likely to overlook reshufflings of income.
While globalization occasionally raises difficult questions about the legitimacy of its redistributive effects, we should not respond automatically by restricting trade.
It's precisely because the redistributive effects of a minimum wage are complicated that most economists prefer other ways to help low-income families.
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