Abstract
Abstract
This chapter considers behavioral responses to Stakeholding. The actual effect of Stakeholder Grants on overall wealth inequality depends on (1) what proportion of the stakes is actually saved and (2) how gifts and bequests change in response to Stakeholding. It is likely that Stakeholder Grants partly crowd out private transfers and that a substantial portion of them is spent (rather than saved). If these effects are greater for the less than the more wealthy, the equalizing effects of Stakeholding will be reduced, and if these factors are strong enough, they could conceivably reverse the effects of Stakeholding and increase wealth inequality.
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