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Reward and Responsibility: How Should We be Affected when Others Change their Effort?

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  • Alexander W. Cappelen
  • Bertil Tungodden

Abstract

We look at how one should reward effort without rewarding talent. One way to approach this issue is to ask how an increase in one individual's effort should be allowed to affect the post-tax income of others. The article provides characterizations of three main classes of redistribution mechanism on the basis of how these answer this question.

Suggested Citation

  • Alexander W. Cappelen & Bertil Tungodden, 2003. "Reward and Responsibility: How Should We be Affected when Others Change their Effort?," Politics, Philosophy & Economics, , vol. 2(2), pages 191-211, June.
    • Handle: RePEc:sae:pophec:v:2:y:2003:i:2:p:191-211
    DOI: 10.1177/1470594X03002002003
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    Cited by:

    1. Erling Barth & Alexander W. Cappelen & Tone Ognedal, 2013. "Fair Tax Evasion," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 38, pages 1-3.
    2. Bertil Tungodden, 2004. "Some Reflections on the Role of Moral Reasoning in Economics," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 30, pages 49-59.
    3. Alexander Cappelen & Bertil Tungodden, 2009. "Rewarding effort," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(3), pages 425-441, June.
      • Cappelen, Alexander W. & Tungodden, Bertil, 2004. "Rewarding effort," Memorandum 15/2004, Oslo University, Department of Economics.
    4. Alexander Cappelen & Bertil Tungodden, 2007. "Local autonomy and interregional equality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(3), pages 443-460, April.
    5. Alexander W. Cappelen & Bertil Tungodden, 2017. "Fairness and the proportionality principle," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 709-719, December.
    6. Cappelen, Alexander W. & Norheim, Ole Frithjof, 2006. "Responsibility, fairness and rationing in health care," Health Policy, Elsevier, vol. 76(3), pages 312-319, May.

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