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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...
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Let there be two individuals: "rich," and "poor." Due to inefficiency of the income redistribution policy, if a social planner were to tax the rich in order to transfer to the poor, only a fraction of the taxed income would be given to the poor. Under such inefficiency and a standard utility...
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Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals' utility functions incorporate distaste for low...
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