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Inequality preserving rationing

  • Hougaard, Jens Leth
  • Osterdal, Lars Peter

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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File URL: http://www.sciencedirect.com/science/article/B6V84-4G002HJ-3/2/48f151bc45df6d638b06ea2dc0034aab
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 87 (2005)
Issue (Month): 3 (June)
Pages: 355-360

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Handle: RePEc:eee:ecolet:v:87:y:2005:i:3:p:355-360
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
  2. M. Angeles de Frutos, 1999. "Coalitional manipulations in a bankruptcy problem," Review of Economic Design, Springer, vol. 4(3), pages 255-272.
  3. 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.
  4. Biung-Ghi Ju, 2003. "Manipulation via merging and splitting in claims problems," Review of Economic Design, Springer, vol. 8(2), pages 205-215, October.
  5. 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.
  6. Chun, Youngsub, 1988. "The proportional solution for rights problems," Mathematical Social Sciences, Elsevier, vol. 15(3), pages 231-246, June.
  7. 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.
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