Robin Hood Effect

AAA

DEFINITION of 'Robin Hood Effect'

A phenomenon where the less well-off gain at the expense of the better-off. The Robin Hood effect gets its name from the folkloric outlaw Robin Hood, who, according to legend, stole from the rich to give to the poor. A reverse Robin Hood effect occurs when the better-off gain at the expense of the less well-off.

INVESTOPEDIA EXPLAINS 'Robin Hood Effect'

The term "Robin Hood effect" is most commonly used in discussions of income inequality and educational inequality. For example, a government that collects higher taxes from the rich and lower or no taxes from the poor, and then uses that tax revenue to provide services for the poor, creates a Robin Hood effect.

RELATED TERMS
  1. Capitalism

    A system of economics based on the private ownership of capital ...
  2. Egalitarianism

    A philosophical thought system that emphasizes equality and equal ...
  3. Income Inequality

    The unequal distribution of household or individual income across ...
  4. Poverty Gap

    The average shortfall of the total population from the poverty ...
  5. Economics

    A social science that studies how individuals, governments, firms ...
  6. Progressive Tax

    A tax that takes a larger percentage from the income of high-income ...
Related Articles
  1. Stop Keeping Up With The Joneses - They're ...
    Budgeting

    Stop Keeping Up With The Joneses - They're ...

  2. Pass On Wealth To Spread Holiday Cheer
    Personal Finance

    Pass On Wealth To Spread Holiday Cheer

  3. Young Investors: What Are You Waiting ...
    Investing Basics

    Young Investors: What Are You Waiting ...

  4. Tips For Handling Sudden Wealth
    Entrepreneurship

    Tips For Handling Sudden Wealth

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center