Working Paper

Inequality, Public Wealth, and the Federal Shareholder

Giacomo Corneo
CESifo, Munich, 2016

CESifo Working Paper No. 5861

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.

CESifo Category
Public Finance
Social Protection
Keywords: public ownership, redistribution
JEL Classification: H000, H500