Higher-income people might invest more of a cash-transfer into higher yield assets than those with lower-incomes, exacerbating income inequality in the long-run.

While experimental results generally suggest the Alaska Permanent Fund dividends either decreased inequality, or had no effect, these cannot rule out the long-term possibility that universal transfers may increase inequality by allowing high-income recipients to simply invest the transfer in higher-yield assets, while those with lower incomes must spend the transfer on immediate consumption.

theoretical