Erratum: A tale of two (and more) altruists (2021 J. Stat. Mech. 103405)

We introduce a minimalist dynamical model of wealth evolution and wealth sharing among N agents as a platform to compare the relative merits of altruism and individualism. In our model, the wealth of each agent independently evolves by diffusion. For a population of altruists, whenever any agent reaches zero wealth (that is, the agent goes bankrupt), the remaining wealth of the other N − 1 agents is equally shared among all. The population is collectively defined to be bankrupt when its total wealth falls below a specified small threshold value. For individualists, each time an agent goes bankrupt (s)he is considered to be ‘dead’ and no wealth redistribution occurs. We determine the evolution of wealth in these two societies. Altruism leads to more global median wealth at early times; eventually, however, the longest-lived individualists accumulate most of the wealth and are richer and more long lived than the altruists.

Inequality, identity, and partisanship: How redistribution can stem the tide of mass polarization

The form of political polarization where citizens develop strongly negative attitudes toward out-party members and policies has become increasingly prominent across many democracies. Economic hardship and social inequality, as well as intergroup and racial conflict, have been identified as important contributing factors to this phenomenon known as “affective polarization.” Research shows that partisan animosities are exacerbated when these interests and identities become aligned with existing party cleavages. In this paper, we use a model of cultural evolution to study how these forces combine to generate and maintain affective political polarization. We show that economic events can drive both affective polarization and the sorting of group identities along party lines, which, in turn, can magnify the effects of underlying inequality between those groups. But, on a more optimistic note, we show that sufficiently high levels of wealth redistribution through the provision of public goods can counteract this feedback and limit the rise of polarization. We test some of our key theoretical predictions using survey data on intergroup polarization, sorting of racial groups, and affective polarization in the United States over the past 50 y.

The COVID-19 - An Agent for Bioterrorism?

Bioterrorism is a form of terrorism where there is intentional release of biological agent (bacteria, virus, fungi or other germs) to cause harm, illness or death of people, livestock and crops. It is an unlawful use of microorganisms to inflict various forms of harm/harmful incidence or injuries in humans, whole population and environment. There are reasons why this COVID-19 global pandemic appears to represent a deliberate act of Bioterrorism. This is occurring at a critical time in the worldwide especially in times of US presidential election cycle. It appears to be worse in males which have implications for military which might be seen as a biological weapon. This has created a market whiplash the large pullback in markets. COVID-19 represents a tremendous opportunity for investment and wealth redistribution like Swine flu pandemic in 2008-2009 when fortunes were made during that recovery.

The gifted city: Setting a research agenda for philanthropy and urban governance

With billions worth of funding to city-based projects, urban dwellers and city leaders the world over, philanthropy is no small matter. It might shape the form, politics and direction of urban development worldwide, yet little discussion of its role is present in urban studies. In this commentary, we call for urban scholars and practitioners to become more explicitly conversant in its investment dynamics in cities and their impact on urban governance. We highlight a two-pronged research agenda focused on institutions and individuals. First, we argue that we need to understand the impact of philanthropic institutions not just generally on cities but specifically on urban governance. Second, we call for nuanced attention to the philanthropy of high-net-worth individuals (HNWIs) and its relationship to urban policymaking and wealth redistribution in cities. Third, we highlight the value of a more ‘global urban’ outlook onto the landscape of philanthropic funding in cities, starting with greater attention to philanthropic practices beyond the Global North. We conclude by sketching possible empirical steps towards an action research agenda, whilst underlining the necessary reflexivity that urban scholars should have in their positioning vis-a-vis philanthropy and its engagement in urban academia.

School Catchment Zone Mergers and Housing Wealth Redistribution

This study investigates how perceived school quality affects housing values, using a new estimation method. Our empirical design takes advantage of the mergers of school catchment zones initiated by the government to develop quasi-experiments. We find that, in zones that gained sudden access to higher ranked schools, housing prices increased by 1.3 to 4.1 percent. Larger and more expensive houses appreciated more in response to the improvement in perceived quality of available schools. The findings generate important policy implications regarding housing wealth redistribution and housing expenditures among different households. The study also enriches the literature on the capitalization effect of school quality.

Fascism: Left, Right, or Neither

The article discusses fascism's place on the political spectrum. At present, there is no consensus among political scientists and economists on that issue, as it has been extraordinarily politicized and distorted during ideological struggles among various currents of socialism. From the very beginning, fascism was depicted by Marxists as belonging to the Right, while Fascists themselves wanted to build a society that transcends the Left-Right paradigm. However, few voices in academia have noted that practical implementation of the fascists’ ideas, inherited from the works of revolutionary and national syndicalists, exhibited predominantly leftist characteristics.The ambiguity of placing fascism in its proper place on the political spectrum can be confidently resolved by applying three primary factors that govern political spectrum polarization: attitude to private property, scope of individual freedom, and degree of wealth redistribution. The article argues that fascism is a particular current of non-Marxian socialism that utilized collectivization of consciousness and wealth redistribution as the main paths toward socialism rather than outright expropriation of private property or means of production. Simultaneously, it is acknowledged that private property rights were inhibited by the fascist state, even though de jure they were permitted.The fascist ideal of the “alternate way” had a logical inconsistency that produced an unstable equilibrium between labor and capital as well as between the man and the state. The politico-economic structure predictably collapsed to the left in the course of building a new society. Therefore, fascism could be correctly called the Right of the Left.

Hidden Blemish in European Law: Judgements on Unconventional Monetary Programmes

This article studies the hidden blemishes of two benchmark rulings of the European Court of Justice (ECJ). In 2015 and 2018, the ECJ approved two unconventional monetary instruments, among others ‘Outright Monetary Transactions’ and the ‘Public Sector Purchase Program’. Yet, there is a vigorous debate about both monetary operations in law and economics. In this interdisciplinary article, we address law and economic arguments in order to elucidate insights to the legal community. In particular, we elaborate on the legal implications of a variety of concerning issues such as public policy interference, effect on wealth redistribution, erosion of democratic legitimacy and lack of effectiveness of monetary policy. These topics remain disregarded in the ECJ rulings. Consequently, the verdicts do not identify the economic boundaries of the European Central Bank’s mandate appropriately.