ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

Detailed explanation-2: -Redistribution is generally referred to as ‘vertical’ (between richer and poorer people) or ‘horizontal’ (between groups of people with different characteristics – for example, from people without children to those with children, or from younger to older people).

Detailed explanation-3: -Redistribution is the accumulation of goods or labor by a particular person or institution for the purpose of dispersal at a later date. Redistribution is found in all societies. For example, within households we pool our labor and resources, yet we rarely distribute these outside of our family.

Detailed explanation-4: -Redistribution refers to modifications of the holdings of particular persons, collective agents, or groups (as defined in terms of non-resource holding characteristics), or changes in holdings by groups (as defined by resource holdings).