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in turn inuences its economic efficiency. The environment we explore is one in which a country's lower classes may revolt … economic efficiency. Trade integration alters the relative value of the elite's wealth. This alters the lower classes … determines whether trade integration increases or reduces economic efficiency. The econometric findings support the model's main …
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We study equitable allocation of indivisible goods and money among agents with other-regarding preferences. First, we argue that Foley's (1967) equity test, i.e., the requirement that no agent prefer the allocation obtained by swapping her consumption with another agent, is suitable for our...
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