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Production and Just Distribution in Diverse Society

Maria Roginskaya

TL;DR

The paper addresses how diversity in productivity and justice perceptions shapes economic outcomes by proposing a discrete-time, closed-system framework where individual productivity $p_i(t+1)$ responds to perceived fairness through $J(a_i,p_i,c(p_i,P),c_i(p_i,P))$ under a redistribution rule $c(p,P)=\alpha P+(1-\alpha)p$. It analyzes a simple taxation model with parameters $ abla$ and shows that stable equilibria emerge where socialists either work at full capacity, at the average, or not at all, with the average $P$ adjusting to balance contributions. The findings reveal rich dynamical behavior and sensitivity to the taxation parameter, including convergence to fixed points and potential reductions in total output under certain distributions. The work provides a tractable foundation for exploring how perceptions of justice influence productivity and suggests extensions such as envy effects and information limitations to improve realism and policy relevance.

Abstract

In this paper, we want to investigate dynamics of productivity in a society which is diverse when it comes to both the productivity and the perception of justice in distribution.

Production and Just Distribution in Diverse Society

TL;DR

The paper addresses how diversity in productivity and justice perceptions shapes economic outcomes by proposing a discrete-time, closed-system framework where individual productivity responds to perceived fairness through under a redistribution rule . It analyzes a simple taxation model with parameters and shows that stable equilibria emerge where socialists either work at full capacity, at the average, or not at all, with the average adjusting to balance contributions. The findings reveal rich dynamical behavior and sensitivity to the taxation parameter, including convergence to fixed points and potential reductions in total output under certain distributions. The work provides a tractable foundation for exploring how perceptions of justice influence productivity and suggests extensions such as envy effects and information limitations to improve realism and policy relevance.

Abstract

In this paper, we want to investigate dynamics of productivity in a society which is diverse when it comes to both the productivity and the perception of justice in distribution.
Paper Structure (6 sections, 2 theorems, 15 equations, 3 tables)

This paper contains 6 sections, 2 theorems, 15 equations, 3 tables.

Table of Contents

  1. Introduction
  2. Definition of a Productive Society and Justice Schemes
  3. A Very Simple Example
  4. Simple Taxation Model and Its Stable Points
  5. Dynamics of a Simple Taxation Model
  6. How Realistic Is the Simple Taxation Model?

Key Result

Lemma 1

If an individual accepts a level of justice in distribution given by $\alpha_i$, while the imposed distribution operates at level $\alpha$, then the following outcomes are possible:

Theorems & Definitions (7)

  • Definition 1
  • Definition 2
  • Remark 1
  • Definition 3
  • Lemma 1
  • Corollary 1
  • Remark 2