Related papers: Redistribution Through Tax Relief
What is the best macroprudential regulation when households differ in their exposure to profits from the financial sector? To answer the question, I study a real business cycle model with household heterogeneity and market incompleteness.…
We study a heterogeneous agent macroeconomic model with an infinite number of households and firms competing in a labor market. Each household earns income and engages in consumption at each time step while aiming to maximize a concave…
In an attempt to make algorithms fair, the machine learning literature has largely focused on equalizing decisions, outcomes, or error rates across race or gender groups. To illustrate, consider a hypothetical government rideshare program…
Investing in urban green schoolyards is becoming more popular around the world because they could enhance health, education, and community outcomes. There is still considerable debate regarding the impact of urban green schoolyards on…
Public and private institutions must often allocate scare resources under uncertainty. Banks, for example, extend credit to loan applicants based in part on their estimated likelihood of repaying a loan. But when the quality of information…
Recently, Landau, Reid and Yershov provided a novel solution to the problem of redistricting. Instead of trying to ensure fairness by restricting the shape of the possible maps or by assigning the power to draw the map to nonbiased…
Local parks are public resources that promote human and environmental welfare. Unfortunately, park inequities are commonplace as historically marginalized groups may have insufficient access. Platforms exist to identify the geographical…
We study economies where consumers interact independently with many monopolists. When consumer valuations over goods are correlated, correlation can distort the induced distribution of consumer surplus (information rents). We identify which…
We formulate a flexible micro-to-macro kinetic model which is able to explain the emergence of income profiles out of a whole of individual economic interactions. The model is expressed by a system of several nonlinear differential…
Growing use of machine learning in policy and social impact settings have raised concerns for fairness implications, especially for racial minorities. These concerns have generated considerable interest among machine learning and artificial…
To gain insights into the problem of regional inequality, we proposed new regional asset exchange models based on existing kinetic income-exchange models in economic physics. We did this by setting the spatial exchange range and adding bias…
We consider a setting where $p$ public resources are to be allocated among $n$ competing and strategic agents so as to maximize social welfare (the objects should be allocated to those who value them the most). This is called allocative…
An urban planner might design the spatial layout of transportation amenities so as to improve accessibility for underserved communities -- a fairness objective. However, implementing such a design might trigger processes of neighborhood…
Bringing fairness to energy resource allocation remains a challenge, due to the complexity of system structures and economic interdependencies among users and system operators' decision-making. The rise of distributed energy resources has…
We demonstrate by mathematical analysis and systematic computer simulations that redistribution can lead to sustainable growth in a society. The human capital dynamics of each agent is described by a stochastic multiplicative process which,…
This chapter surveys the application of matching theory to school choice, motivated by the shift from neighborhood assignment systems to choice-based models. Since educational choice is not mediated by price, the design of allocation…
We introduce a simple model of economy, where the time evolution is described by an equation capturing both exchange between individuals and random speculative trading, in such a way that the fundamental symmetry of the economy under an…
We consider transferable-utility profit-sharing games that arise from settings in which agents need to jointly choose one of several alternatives, and may use transfers to redistribute the welfare generated by the chosen alternative. One…
A simple heuristic model, including the multiple exchanges between economic agents, is used to explain the mechanism of emerging and maintenance of social inequality in the market economy. The model allows calculating a density function of…
This paper examines the interplay between desegregation, institutional bias, and individual behavior in education. Using a game-theoretic model that considers race-heterogeneous social incentives, the study investigates the effects of…