This new research theme - The Public Economics of Inequality - aims to bring the classic approach in Public Economics and its most recent advances to the study of inequality. This approach will be tested and embedded in the interdisciplinary environment that the III provides. The research theme will be organised around three central themes in Public Economics.
The first theme is the measurement of the relevant dimensions of inequality, following the spirit of the late Sir Tony Atkinson. Our research will focus on new data opportunities and methodological advances to go beyond the measurement of income and wealth inequality and provide a more comprehensive account of the distribution of welfare. This includes the measurement of consumption, un-reported income and wealth, and health outcomes and wellbeing.
The second theme is to provide a better understanding of the mechanisms underlying inequality. Starting from the measurement of different dimensions of inequality, we hope to uncover the underlying mechanisms, ranging from economic forces to behavioural biases, and from gender frictions to intrahousehold insurance.
The final theme is to support the design of policy to tackle inequality more effectively. This research theme builds on a rich tradition in public economics to develop general frameworks and common methodologies, tightly integrating theory and empirics, intended to inform and improve policy design.
This theme draws together the expertise of LSE academics from different Departments and will be promoted by the Public Economics group at STICERD in the Department of Economics. The theme will support research collaborations as well as knowledge exchange activities.
Find out more about the theme here