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Main Library
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Poverty, competition, democracy, and ownership: A general equilibrium model with vertical preferences.
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- Author(s): Kahloul, Amani; Lahmandi‐Ayed, Rim; Lasram, Hejer
- Source:
Journal of Public Economic Theory; Dec2019, Vol. 21 Issue 6, p1143-1178, 36p, 9 Charts, 11 Graphs- Subject Terms:
- Source:
- Additional Information
- Abstract: We consider a general equilibrium model where individuals are simultaneously workers, consumers, and shareholders, with two possible market structures: Monopoly and Duopoly, and two extreme ownership structures: egalitarian and concentrated. Considering three standard poverty indicators, the questions are, whether more competition generates more or less poverty for a given ownership structure; and whether a democratic choice between Monopoly and Duopoly leads to the alternative with less poverty. When the ownership is concentrated, we show that Duopoly generates less poverty than Monopoly and the majority votes for the alternative with less poverty. When the ownership is egalitarian, Duopoly may generate more or less poverty and democratic choice alleviates poverty regarding at least one poverty indicator and worsens poverty regarding at least another one, the three poverty indicators never converging. An empirical study on the effect of competition on poverty supports to some extent our theoretical findings. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Journal of Public Economic Theory is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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