Warning message

CEPR.org and portal.cepr.org will be unavailable between 22:00-22:30 GMT on the 16th September 2019 due to maintenance.

DP4410 | Robin Hood's Compromise: Land Reforms, Inequality, Redistribution and Moral Hazard

Publication Date

23/06/2004

JEL Code(s)

Keyword(s)

Programme Area(s)

Abstract

This Paper analyses an unusually conservative type of redistribution. We take land from the very rich, as usual, but give it to the rich instead of the poor. We show that this type of reform reduces agency costs, thus increasing productivity, total surplus in the economy, and workers? welfare. Compared to the classic redistribution ?to the tiller? it does worse in terms of equity and does not give the poor a collaterizable asset but it is likely to be more sustainable, both economically and politically.