A Different Rationale for Redistribution: A Reply to Bjornskov

First we would like to thank Christian Bjornskov for his comments and in particular for acknowledging the contribution we make in introducing the idea that inter-country redistribution might be more effective a way of redistributing incomes than interpersonal redistribution within a country and, in general, the quality of our theoretical and indeed empirical analysis. We feel that the more critical points he makes of the paper are largely due to a misunderstanding and we welcome the opportunity to further clarify our contribution.