A fair solution to the compensation problem
AbstractWe study equity in economies where agents are endowed with different, non transferable, personal talents. To compensate them for such differences a given amount of money needs to be shared among them. We axiomatize a family of social orderings over allocations based on efficiency, fairness and robustness properties. Taking into account incentive constraints we derive the optimal policy: individuals with the same talent need to be equally compensated and only people whose level of talent is below a certain threshold should receive a positive compensation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Social Choice and Welfare.
Volume (Year): 32 (2009)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00355/index.htm
Other versions of this item:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marc Fleurbaey & Fran�ois Maniquet, 2006.
"Fair Income Tax,"
Review of Economic Studies,
Oxford University Press, vol. 73(1), pages 55-83.
- FLEURBAEY, Marc & MANIQUET, François, . "Fair income tax," CORE Discussion Papers RP -1845, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Marc Fleurbaey & Francois Maniquet, 2002. "Fair Income Tax," Economics Working Papers 0021, Institute for Advanced Study, School of Social Science.
- FLEURBAEY, Marc & MANIQUET, François, .
"Fair social orderings,"
CORE Discussion Papers RP
-1995, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- R. I. Luttens & E. Ooghe, 2005.
"Is it fair to “make work pay”?,"
Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium
05/283, Ghent University, Faculty of Economics and Business Administration.
- Francois Maniquet & Yves Sprumont, 2002.
"Welfare Egalitarianism in Non-Rival Environments,"
Economics Working Papers
0016, Institute for Advanced Study, School of Social Science.
- Marc Fleurbaey & François Maniquet, 2005.
"Fair social orderings when agents have unequal production skills,"
Social Choice and Welfare,
Springer, vol. 24(1), pages 93-127, 09.
- FLEURBAEY, Marc & MANIQUET, François, . "Fair social orderings when agents have unequal production skills," CORE Discussion Papers RP -1805, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- repec:ner:louvai:info:hdl:2078.1/23401 is not listed on IDEAS
- Marc Fleurbaey & François Maniquet, 2006.
"Compensation and responsibility,"
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- CALO-BLANCO, Aitor, 2012. "Responsibility, freedom, and forgiveness in health care," CORE Discussion Papers 2012004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CALO-BLANCO, Aitor, 2012. "The compensation problem with fresh starts," CORE Discussion Papers 2012036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Valletta Giacomo, 2012. "Health, Fairness and Taxation," Research Memoranda 017, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.