Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54731
Authors: 
Stark, Oded
Year of Publication: 
2012
Series/Report no.: 
University of Tübingen working papers in economics and finance 25
Abstract: 
I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people's social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger levels.
Subjects: 
integration of regions
merger of populations
revision of social space
aggregate relative deprivation
social distress
policy responses
JEL: 
D04
D63
F55
H53
P51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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