Grimalda, Gianluca; Trannoy, Alain; Filgueira, Fernando; … - In: Review of Social Economy 78 (2020) 2, pp. 151-184
Two traditional theorems of welfare economics posit a trade-off between a government redistribution targets and efficiency. We propose a third ‘claim’ of welfare economics, stating that in closed economies the actual efficiency costs associated with redistribution are small. We then examine...