We analyze a model of resource allocation in which agents' abilities (to transform the resourceinto an interpersonally comparable outcome) and initial endowments may differ. We imposeethical and operational axioms in this model and characterize some allocation rules as a resultof combining these...

We establish the precise connections between progressive taxation andinequality reduction, in a setting where the level of tax revenue to be raised isendogenously fixed and tax schemes are balanced. We show that, in contrastwith the traditional literature on taxation, the equivalence between...