The Paradox of Redistribution: A System Dynamics Translation
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Inequality has received renewed attention in the public as well as in the academic debate. According to one theory, the development of redistribution and inequality reflects the institutional design of the social insurances. Countries with social insurance institutions that target the poor and low-income earners arrive, over time, in smaller redistributive budgets and higher levels of poverty than countries with social insurance institutions with lower levels of low-income-targeting. This result has been explained by the fact that inequality, and poverty rates, are more dependent on the total size of the redistributive budget than to the extent that the institutions target the poor. There is a paradox of redistribution. In this paper, the paradox of redistribution is translated to system dynamics and the coherence of the theory is analyzed by a system dynamics model. The system dynamics translation results in a model that reproduces the reference modes. The result suggests that system dynamics ought to have a profound role in the discussions on inequality, both as a tool that may be used to explain and discuss concepts and in suggesting structural explanations with an endogenous point of view.
Place, publisher, year, edition, pages
Inequality, endogenous point of view, system dynamics, paradox of redistribution, poverty, inequality, system dynamics translation, welfare state regimes, social insurance, convergence, divergence
IdentifiersURN: urn:nbn:se:uu:diva-264460OAI: oai:DiVA.org:uu-264460DiVA: diva2:860556