9507692 Dixit Redistribution of income affects both individuals and businesses. Redistribution may be between rich and poor and individuals or businesses and subsidized businesses. Political parties and politicians determine redistributive policy. Redistributive policies do not necessarily lead to desirable economic outcomes. The proposed research agenda will determine if some redistributive policies have more desirable effects in the long run than in the short run. It will examine the impact of redistributive polices on occupational and geographic choices and the effect of political parties having distinctly different preferences for progressive redistribution. Finally, it will look at the relocation choices made by individuals and businesses as determined by the redistributive decisions made by different localities and different levels of government (federal, state, and local). The emphasis will be on theoretical foundations for this analysis, but some instances case studies will be done.
