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Optimal Income Redistributions, That Are Not Pareto-Optimal

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  • Furth , Dave

Abstract

The purpose of this paper is to give necessary conditions for income redistributions that are optimal in some sense, but not Pareto-optimal. A distinction is made between optimal distributions and distributions that can be improved upon through transfers. A further distinction is made between cooperative and non-cooperative redistributions; the last ones including Nash-equilibria. For noncooperative redistributions there is, depending on the initial income-distribution, the possibility of free-riders.

Suggested Citation

  • Furth , Dave, 1982. "Optimal Income Redistributions, That Are Not Pareto-Optimal," University of Amsterdam, Actuarial Science and Econometrics Archive 293060, University of Amsterdam, Faculty of Economics and Business.
  • Handle: RePEc:ags:amstas:293060
    DOI: 10.22004/ag.econ.293060
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