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Differences in preferences are important to explain variation in individuals' behavior. There is however no consensus on how to take these differences into account when evaluating policies. While prominent in the economic literature, the standard utilitarian criterion faces two major...
Persistent link: https://www.econbiz.de/10012996204
We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...
Persistent link: https://www.econbiz.de/10013075665
distributive justice. Here we study people’s normative views in social dilemmas, which underlie many situations of economic and …
Persistent link: https://www.econbiz.de/10013316140
An important element for the public support of policies is their perceived justice. At the same time most policy … their own risk preferences. The observed allocations are consistent with four different views of justice under uncertainty …
Persistent link: https://www.econbiz.de/10013315740
Declining fertility and increasing longevity have rendered public pension systems in many OECD countries unsustainable and have triggered substantial reforms of these systems. One of the officially declared reform objectives is to raise the average retirement age. Crucial parameters for this...
Persistent link: https://www.econbiz.de/10013316877
The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...
Persistent link: https://www.econbiz.de/10013318275
Rising income inequalities are widely debated in public and academic discourse. In this paper, we contribute to this debate by proposing a new family of measures of unfair inequality. To do so, we acknowledge that inequality is not bad per se, but that its underlying sources need to be taken...
Persistent link: https://www.econbiz.de/10012912680
The paper reports the first experimental study on people's fairness views on extreme income inequalities arising from winner-take-all reward structures. We find that the majority of participants consider extreme income inequality generated in winner-take-all situations as fair, independent of...
Persistent link: https://www.econbiz.de/10012915504
current European framework can be essentially considered an appropriate object of Rawls' theory of domestic justice since the … Rawls' pure procedural justice and then to derive a difference principle at European level: a) the mutually advantageous …: reallocation of resources. The core of the paper is the idea that Rawls' social contract theory can provide some insights about the …
Persistent link: https://www.econbiz.de/10012910615
This paper is based on the ideas of political philosopher John Rawls who suggested that a just society is one which …
Persistent link: https://www.econbiz.de/10012986116