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Inequality Preserving Rationing

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Author Info
Lars Peter Østerdal (Institute of Economics, University of Copenhagen)
Jens Leth Hougaard (Institute of Economics, University of Copenhagen)

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Abstract

The present paper considers rationing problems interpreted as e.g. bankruptcy problems or taxation problems. We demonstrate that among the continuous and order-preserving rationing methods, theproportional method is the only rationing method that preserves inequality in both gains and losses.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 04-23.

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Length: 9 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:kud:kuiedp:0423

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Related research
Keywords: rationing; inequality preservation; taxation; manipulation; proportional method;

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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References listed on IDEAS
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.:
  1. Chun, Youngsub, 1988. "The proportional solution for rights problems," Mathematical Social Sciences, Elsevier, vol. 15(3), pages 231-246, June. [Downloadable!] (restricted)
  2. Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August. [Downloadable!] (restricted)
  3. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August. [Downloadable!] (restricted)
  4. Moyes, Patrick, 1989. "Some classes of functions that preserve the inequality and welfare orderings of income distributions," Journal of Economic Theory, Elsevier, vol. 49(2), pages 347-359, December. [Downloadable!] (restricted)
  5. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April. [Downloadable!] (restricted)
  6. Biung-Ghi Ju, 2003. "Manipulation via merging and splitting in claims problems," Review of Economic Design, Springer, vol. 8(2), pages 205-215, October. [Downloadable!] (restricted)
  7. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357 Elsevier. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Karagozoglu, Emin, 2008. "A Noncooperative Approach to Bankruptcy Problems with an Endogenous Estate," Research Memoranda 031, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  2. Karagozoglu, Emin, 2008. "Distributive Concerns in the Bankruptcy Problem with an Endogenous Estate," Research Memoranda 032, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
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