Why morally motivated public good provision can lead to polarisation

This seminar explores how inequality can erode moral responsibility, driving social segregation, polarisation and weaker public goods.
About this Event

Part of the Inequalities Seminar Series

Speaker:
Professor Karine Nyborg, Professor of Economics, University of Oslo

Moral obligations can be burdensome, possibly giving rise to dynamic social processes easing the burden. We show that in unequal societies relying on voluntary public good provision, social learning and social migration can gradually undermine individuals’ feeling of moral responsibility, while at the same time causing segregation and strong normative polarization. In the steady state, total voluntary contributions to public goods are minimal. Low-income individuals are completely egalitarian, while high-income individuals are completely libertarian; moreover, low- and high-income individuals do not interact socially. We also show, however, that if public goods are tax-funded and provided by the government, public good supply may reach its first-best level whereas no strong polarization needs arise.

For online attendance, please register .