Many economic models are constructed on the basis of an equity-efficiency trade-off, assuming that equality comes at the cost of efficiency. This column argues that inequality is better understood as an economic externality. It matters not only because people care about inequality itself, but because they prefer to live in societies that function smoothly, and inequality affects a wide range of social outcomes – from crime rates and mental health to political polarisation and economic growth. If inequality increases inefficiency, then even narrowly self-interested individuals are affected by its perpetuation.

Analysis of projected sub-national damages from temperature and precipitation show an income reduction of 19% of the world economy within the next 26 years independent of future emission choices.

Wer wenig verdient oder Bürgergeld bezieht, erfüllt die Pariser Klimaziele schon jetzt: Der Soziologe Steffen Mau spricht über die „Ökologie der Arbeiterklasse“, die medial fast nie vorkommt, ...

Why, in a world where wealth matters more than ever, we want to tax it less

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Deutschland: Eher Erben- denn Leistungsgesellschaft

Two new books by the French novelist mark a political turn in his writing.

The planetary ecosystem is in crisis. Humans brought it there. What are we going to do about it? These are three enormous simplifications, the latter two of which in particular have produced endless d...

Most emerging markets have not found an engine of durable growth comparable to manufacturing—most have indeed grown over the last few decades, but dependence on services and commodities exports has ...