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Laissez-faire or full redistribution?

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  • Martínez, Ricardo
  • Moreno-Ternero, Juan D.

Abstract

We explore the implications of three basic and intuitive axioms for income redistribution problems: equal treatment of equals, additivity and stability. We show that the combination of the three axioms characterizes two focal and polar rules: laissez-faire and full redistribution.

Suggested Citation

  • Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "Laissez-faire or full redistribution?," Economics Letters, Elsevier, vol. 218(C).
    • Handle: RePEc:eee:ecolet:v:218:y:2022:i:c:s0165176522002701
    DOI: 10.1016/j.econlet.2022.110756
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    1. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2022. "On the axiomatic approach to sharing the revenues from broadcasting sports leagues," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(2), pages 321-347, February.
    2. Biung-Ghi Ju & Juan Moreno-Ternero, 2011. "Progressive and merging-proof taxation," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 43-62, February.
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    10. Christopher P. Chambers & Juan D. Moreno-Ternero, 2017. "Taxation and poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 153-175, January.
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    14. Casajus, André, 2015. "Monotonic redistribution of performance-based allocations: a case for proportional taxation," Theoretical Economics, Econometric Society, vol. 10(3), September.
    15. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2020. "Sharing the Revenues from Broadcasting Sport Events," Management Science, INFORMS, vol. 66(6), pages 2417-2431, June.
    16. Casajus, André, 2016. "Differentially monotonic redistribution of income," Economics Letters, Elsevier, vol. 141(C), pages 112-115.
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    Cited by:

    1. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    2. Zou, Zhengxing & Tan, Zhibin, 2023. "Axiomatizations of convex compromise rules for redistribution of non-negative income," Economics Letters, Elsevier, vol. 229(C).

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    More about this item

    Keywords

    Redistribution problems; Laissez-faire; Full redistribution; Equal treatment of equals; Additivity; Stability;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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