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Responsibility, talent, and compensation: A second-best analysis

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Author Info

  • Dirk Van de gaer

    () (Department of Economics, NUI-University of Maynooth, Maynooth, Co. Kildare, Ireland)

  • Marc Fleurbaey

    () (THEMA, Université de Cergy-Pontoise, 33 Bd du Port, F-95011 Cergy-Pontoise Cedex, France)

  • Walter Bossert

    () (Department of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, UK)

Abstract

This paper examines how the first-best models of compensation based on the agents' talents and responsibilities analyzed in some recent contributions can be extended to a second-best context. A few social criteria are proposed and compared to alternative approaches by Roemer and Van de gaer.

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Bibliographic Info

Article provided by Springer in its journal Review of Economic Design.

Volume (Year): 4 (1999)
Issue (Month): 1 ()
Pages: 35-55

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Handle: RePEc:spr:reecde:v:4:y:1999:i:1:p:35-55

Note: Received: 5 March 1997 / Accepted: 19 August 1998
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Related research

Keywords: Compensation; optimal tax; second-best; opportunities;

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  1. Leitura do dia
    by Erik Figueiredo in Moral Hazard on 2008-09-29 12:04:00
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