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Lorenz comparisons of nine rules for the adjudication of conflicting claims

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Author Info
Kristof Bosmans
Luc Lauwers

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Abstract

Consider the following nine rules for adjudicating conflicting claims: the proportional, constrained equal awards, constrained equal losses, Talmud, Piniles’, constrained egalitarian, adjusted proportional, random arrival, and minimal overlap rules. For each pair of rules in this list, we examine whether or not the two rules are Lorenz comparable. We allow the comparison to depend upon whether the amount to divide is larger or smaller than the half-sum of claims. In addition, we provide Lorenz-based characterizations of the constrained equal awards, constrained equal losses, Talmud, Piniles’, constrained egalitarian, and minimal overlap rules.

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File URL: http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps07/Dps0705.pdf
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Publisher Info
Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0705.

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Date of creation: Mar 2007
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Handle: RePEc:ete:ceswps:ces0705

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Related research
Keywords: Claims problem Bankruptcy Taxation Lorenz dominance Progressivity Proportional rule Constrained equal awards rule Constrained equal losses rule Talmud rule Piniles’ rule Constrained egalitarian rule Adjusted proportional rule Random arrival rule Minimal overlap rule

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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This page was last updated on 2008-9-3.


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