DP10920 Inequality, Public Wealth, and the Federal Shareholder

Author(s):	Giacomo Corneo
Publication Date:	November 2015
Keyword(s):	public ownership, redistribution
JEL(s):	H0, H5
Programme Areas:	Public Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=10920

Current trends in the distribution of wealth trigger a social divide and threaten democracy. I propose to counter this evolution by enhancing the role of public capital as a redistribution and empowerment device. The governance of public capital requires two novel institutions: a socially responsible Sovereign Wealth Fund and a Federal Shareholder. This paper offers an account of their design and sources of financing.