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voluntarily supplied public goods; specifically, we show that not only an income inequality-raising redistribution policy but also … allowed, an inequality-raising redistribution policy is no longer effective and leaves social welfare unchanged …
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In determining the optimal redistribution of a given population's income, we ask which factor is more important: the … convex combination of (absolute) income and low relative income. Assuming that the redistribution comes at a cost (because …
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There is no consensus on how to measure social welfare and inequality when households have different needs. As we show, a dilemma emerges between holding households responsible for their needs or compensating them. This dilemma is of first-order importance for social welfare, but generally plays...
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