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Impartiality and Priority. Part 2: A Characterization with Solidarity

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Abstract

The ethic of 'priority' is a compromise between the extremely compensatory ethic of 'welfare equality' and the needs-blind ethic of ‘income equality’. We propose an axiom of priority, and characterize resource allocation rules that are impartial, prioritarian, and solidaristic. They comprise a class of rules which equalize across individuals some index of resources and welfare. Consequently, we provide an ethical rationalization for the many applications in which such indices have been used (e.g., the 'human development index,' 'index of primary goods,' etc.).

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File URL: http://cowles.econ.yale.edu/P/cd/d14b/d1477-b.pdf
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Bibliographic Info

Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1477B.

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Length: 24 pages
Date of creation: Aug 2004
Date of revision: May 2005
Publication status: Published in Econometrica (2006), 27(5): 311-325
Handle: RePEc:cwl:cwldpp:1477b

Note: CFP 1185.
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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Keywords: Impartiality; Solidarity; Priority; Allocation rules; Characterization result;

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  1. EHLERS, Lars & KLAUS, Bettina, 2003. "Resource-Monotonicity for House Allocation Problems," Cahiers de recherche 12-2003, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Juan Moreno-Ternero & John E. Roemer, 2004. "Impartiality and Priority. Part 1: The Veil of Ignorance," Cowles Foundation Discussion Papers 1477A, Cowles Foundation for Research in Economics, Yale University, revised May 2005.
  3. Ehlers, Lars & Klaus, Bettina, 2001. " Solidarity and Probabilistic Target Rules," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(2), pages 167-84.
  4. Thomson, W., 1996. "Consistent Allocation Rules," RCER Working Papers 418, University of Rochester - Center for Economic Research (RCER).
  5. Thomson, William, 1983. "Problems of fair division and the Egalitarian solution," Journal of Economic Theory, Elsevier, vol. 31(2), pages 211-226, December.
  6. Roemer, John E, 1986. "Equality of Resources Implies Equality of Welfare," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 751-84, November.
  7. Moulin, Herve, 1987. "The Pure Compensation Problem: Egalitarianism versus Laissez-Fairism," The Quarterly Journal of Economics, MIT Press, vol. 102(4), pages 769-83, November.
  8. Keiding, Hans & Moulin, Herve, 1991. "The solidarity axiom in parametric surplus-sharing problems," Journal of Mathematical Economics, Elsevier, vol. 20(3), pages 249-270.
  9. Marc Fleurbaey & Francois Maniquet, 1999. "Cooperative production with unequal skills: The solidarity approach to compensation," Social Choice and Welfare, Springer, vol. 16(4), pages 569-583.
  10. Youngsub Chun, 1999. "Equivalence of Axioms for Bankruptcy Problems," Working Paper Series no1, Institute of Economic Research, Seoul National University.
  11. Sprumont, Yves, 1996. "Axiomatizing Ordinal Welfare Egalitarianism When Preferences May Vary," Journal of Economic Theory, Elsevier, vol. 68(1), pages 77-110, January.
  12. Youngsub Chun, 1999. "Equivalence of axioms for bankruptcy problems," International Journal of Game Theory, Springer, vol. 28(4), pages 511-520.
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Cited by:
  1. Juan Moreno-Ternero & John E. Roemer, 2004. "Impartiality and Priority. Part 1: The Veil of Ignorance," Cowles Foundation Discussion Papers 1477A, Cowles Foundation for Research in Economics, Yale University, revised May 2005.
  2. Armando Barrientos, 2010. "Should poverty researchers worry about inequality?," Brooks World Poverty Institute Working Paper Series 11810, BWPI, The University of Manchester.

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