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There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their misfortune, while they allow them to enjoy the fruits of their effort. This paper introduces fairness in a tax-benefit scheme that is based on several characteristics in order to...
Persistent link: https://www.econbiz.de/10013122256
We study fair and efficient tax-benefi t schemes based on income and non-income factors under partial control. Partial control means that each factor is a speci fic mixture of unobserved ability (randomly drawn by nature) and effort (chosen by individuals who differ in tastes). Factors differ in...
Persistent link: https://www.econbiz.de/10013060362
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Persistent link: https://www.econbiz.de/10014414055
We characterize a measure of social welfare for linear production economies in which individuals differ in productive skills and preferences. The key feature of our measure is that it aggregates fairness gaps, defined as the difference between the money-metric utility that the individual...
Persistent link: https://www.econbiz.de/10013503361
We characterize a measure of social welfare for linear production economies in which individuals differ in productive skills and preferences. The key feature of our measure is that it aggregates fairness gaps, defined as the difference between the money-metric utility that the individual...
Persistent link: https://www.econbiz.de/10014262033