According to a widely held belief, all who are able to work, should workʺ. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A...

Social optimization problems typically maximize the sum of individual weighted utilities over feasible allocations that satisfy certain constraints. While social optimization problems are at the heart of economic analysis, it is not always clear how to choose individual welfare weights. In this...