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Fair social orderings when agents have unequal production skills

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  • Marc Fleurbaey

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  • François Maniquet

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Abstract

We develop an approach which escapes Arrow’s impossibility by relying on information about agents’ indifference curves instead of utilities. In a model where agents have unequal production skills and different preferences, we characterize social ordering functions which rely only on ordinal non-comparable information about individual preferences. These social welfare functions are required to satisfy properties of compensation for inequalities in skills, and equal access to resources for all preferences. Copyright Springer-Verlag 2005

Suggested Citation

  • Marc Fleurbaey & François Maniquet, 2005. "Fair social orderings when agents have unequal production skills," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(1), pages 93-127, September.
  • Handle: RePEc:spr:sochwe:v:24:y:2005:i:1:p:93-127
    DOI: 10.1007/s00355-003-0294-y
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    Cited by:

    1. Jean-François Carpantier & Christelle Sapata, 2016. "Empirical welfare analysis: when preferences matter," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(3), pages 521-542, March.
    2. Laurence Jacquet & Robin Boadway, Craig Brett, 2015. "Optimal Nonlinear Income Taxes with Compensation," THEMA Working Papers 2015-15, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    3. Antoinette Baujard, 2016. "Welfare economics," Chapters,in: Handbook on the History of Economic Analysis Volume III, chapter 42, pages 611-624 Edward Elgar Publishing.
    4. Giacomo, VALETTA, 2007. "A fair solution to the compensation problem," Discussion Papers (ECON - Département des Sciences Economiques) 2007038, Université catholique de Louvain, Département des Sciences Economiques.
    5. LUTTENS, Roland Iwan & OOGHE, Erwin, 2006. "Is it fair to ‘make work pay’ ?," CORE Discussion Papers 2006026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Krzysztof Makarski & Joanna Tyrowicz & Marcin Bielecki, 2017. "Inequality in an OLG economy with heterogeneous cohorts and pension systems," GRAPE Working Papers 21, GRAPE Group for Research in Applied Economics.
    7. Christopher Chambers & Takashi Hayashi, 2012. "Money-metric utilitarianism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(4), pages 809-831, October.
    8. Xavier Ramos & Dirk Van de gaer, 2012. "Empirical Approaches to Inequality of Opportunity: Principles, Measures, and Evidence," Working Papers wpdea1208, Department of Applied Economics at Universitat Autonoma of Barcelona.
    9. Campbell, Donald E. & Kelly, Jerry S., 2009. "Uniformly bounded information and social choice," Journal of Mathematical Economics, Elsevier, vol. 45(7-8), pages 415-421, July.
    10. Laurence Jacquet & Dirk Van de Gaer, 2015. "Politiques fiscales optimales pour les bas revenus et principe de compensation," Revue économique, Presses de Sciences-Po, vol. 66(3), pages 579-600.
    11. Donald E. Campbell & Jerry S. Kelly, 2007. "Uniformly Bounded Information and Social Choice," Working Papers 49, Department of Economics, College of William and Mary.
    12. Valletta Giacomo, 2012. "Health, Fairness and Taxation," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    13. Paolo Giovanni Piacquadio, 2017. "A Fairness Justification of Utilitarianism," Econometrica, Econometric Society, vol. 85, pages 1261-1276, July.
    14. Van de gaer, Dirk & Ramos, Xavier, 2015. "Measurement of Inequality of Opportunity Based on Counterfactuals," IZA Discussion Papers 9582, Institute for the Study of Labor (IZA).
    15. Jacquet, Laurence & Van de Gaer, Dirk, 2011. "A comparison of optimal tax policies when compensation or responsibility matter," Journal of Public Economics, Elsevier, vol. 95(11), pages 1248-1262.
    16. Castellano, Rosella & Cerqueti, Roy & Spinesi, Luca, 2016. "Sustainable management of fossil fuels: A dynamic stochastic optimization approach with jump-diffusion," European Journal of Operational Research, Elsevier, vol. 255(1), pages 288-297.
    17. Giacomo Valletta, 2009. "A fair solution to the compensation problem," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(3), pages 455-478, March.
    18. MANIQUET, François, 2014. "Social ordering functions," CORE Discussion Papers 2014051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    19. Fleurbaey, Marc, 2007. "Two criteria for social decisions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 421-447, May.
    20. Cato, Susumu, 2010. "Local strict envy-freeness in large economies," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 319-322, May.

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