AbstractCompensation/responsibility theory requires that differences in individual outcomes which can be fully attributed to differences in underlying ‘compensation’ factors should be eliminated, while differences in outcomes caused by differential ‘responsibility’ factors should be preserved. To implement the theory, a ‘sharp’ cut between compensation and responsibility factors has to be made, which is often difficult in practice. In this note, we introduce a more .flexible ‘soft’ cut. - Based on a notion of partial compensation/responsibility - into a first-best income tax model à la Bossert (1995) and Bossert and Fleurbaey (1996). Two results emerge. First, we show that this ‘soft’ cut does not allow to escape the Bossert-Fleurbaey separability requirement of the gross income function. Second, we characterize a partial sharing rule-cum-separability as a natural candidate for partial redistribution.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/272145.
Date of creation: 2010
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- Marc Fleurbaey & François Maniquet, 2006. "Compensation and responsibility," Working Papers halshs-00121367, HAL.
- Schokkaert, Erik & Van de Voorde, Carine, 2004.
"Risk selection and the specification of the conventional risk adjustment formula,"
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Elsevier, vol. 23(6), pages 1237-1259, November.
- Erik SCHOKKAERT & Carine VAN DE VOORDE, 2000. "Risk Selection and the Specification of the Conventional Risk Adjustment Formula," Center for Economic Studies - Discussion papers ces0011, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Schokkaert, Erik & Van de Voorde, Carine, 2000. "Risk selection and the specification of the conventional risk adjustment formula," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/121646, Katholieke Universiteit Leuven.
- Erwin OOGHE & Erik SCHOKKAERT, 2009.
"School accountability: (how) can we reward schools and avoid cream-skimming?,"
Center for Economic Studies - Discussion papers
ces09.22, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- OOGHE, Erwin & SCHOKKAERT, Erik, 2009. "School accountability : (how) can we reward schools and avoid cream-skimming," CORE Discussion Papers 2009085, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ooghe, Erwin & Schokkaert, Erik, 2009. "School accountability: (how) can we reward schools and avoid cream-skimming?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/252863, Katholieke Universiteit Leuven.
- Erik Schokkaert & Kurt Devooght, 2003.
"Responsibility-sensitive fair compensation in different cultures,"
Social Choice and Welfare,
Springer, vol. 21(2), pages 207-242, October.
- Kurt Devooght & Erik Schokkaert, 1999. "Responsibility-Sensitive Fair Compensation in Different Cultures," STICERD - Distributional Analysis Research Programme Papers 46, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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