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Fair bounds based solidarity

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  • Giménez-Gómez, José Manuel
  • Peris, Josep E.

Abstract

How should scholarships be distributed among the (public) higher education students? We raise this situation as a redistribution problem. Following the approach developed in Fleurbaey (1994) and Bossert (1995), redistribution should be based on the notion of solidarity and it re-allocates resources taking into account only agents’ relevant characteristics. We also follow Luttens (2010a), who considers that compensation of relevant characteristics must be based on a lower bound on what every individual deserves. In doing so, we use the so-called fair bound (Moulin (2002)) to define an egalitarian redistribution mechanism and characterize it in terms of non-negativity, priority in lower bound and solidarity. Finally, we apply our approach to the scholarships redistribution problem. Keywords: Redistribution mechanism, Lower bounds, Scholarship, Solidarity. JEL classification: C71, D63, D71

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Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/203162.

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Date of creation: 2012
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Handle: RePEc:urv:wpaper:2072/203162

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Keywords: Jocs cooperatius; Economia del benestar -- Models matemàtics; Elecció social; 33 - Economia;

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  1. José M. Jiménez Gómez & María del Carmen Marco, 2008. "A New Approach for Bounding Awards in Bankruptcy Problems," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2008-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Carmen Herrero & Antonio Villar, 2002. "Sustainability in bankruptcy problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, Springer, vol. 10(2), pages 261-273, December.
  3. Johnstone, D. Bruce, 2004. "The economics and politics of cost sharing in higher education: comparative perspectives," Economics of Education Review, Elsevier, Elsevier, vol. 23(4), pages 403-410, August.
  4. FLEURBAEY, Marc & MANIQUET, François, . "Compensation and responsibility," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Hervé MOULIN, 1994. "La présence d’envie comment s’en accomoder?," Discussion Papers (REL - Recherches Economiques de Louvain) 1994013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Moulin, Herve, 2001. "Axiomatic Cost and Surplis-Sharing," Working Papers, Rice University, Department of Economics 2001-06, Rice University, Department of Economics.
  7. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, Elsevier, vol. 45(3), pages 249-297, July.
  8. Thomson, William, 1988. "A study of choice correspondences in economies with a variable number of agents," Journal of Economic Theory, Elsevier, Elsevier, vol. 46(2), pages 237-254, December.
  9. Diego Dominguez, 2007. "Lower bounds and recursive methods for the problem of adjudicating conflicting claims," Working Papers, Centro de Investigacion Economica, ITAM 0705, Centro de Investigacion Economica, ITAM.
  10. Roemer, John E, 1986. "Equality of Resources Implies Equality of Welfare," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 101(4), pages 751-84, November.
  11. Roland Luttens, 2010. "Minimal rights based solidarity," Social Choice and Welfare, Springer, Springer, vol. 34(1), pages 47-64, January.
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