A fair solution to the compensation problem
We study equity in economies where agents are endowed with different, non transferable, personal talents. To compensate them for such differences a given amount of money needs to be shared among them. We axiomatize a family of social orderings over allocations based on efficiency, fairness and robustness properties. Taking into account incentive constraints we derive the optimal policy: individuals with the same talent need to be equally compensated and only people whose level of talent is below a certain threshold should receive a positive compensation.
|Date of creation:||01 Sep 2007|
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- Marc Fleurbaey & François Maniquet, 2005.
"Fair social orderings when agents have unequal production skills,"
Social Choice and Welfare,
Springer, vol. 24(1), pages 93-127, 09.
- FLEURBAEY, Marc & MANIQUET, FranÃ§ois, . "Fair social orderings when agents have unequal production skills," CORE Discussion Papers RP 1805, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Marc Fleurbaey & François Maniquet, 2005. "Fair social orderings when agents have unequal production skills," Post-Print hal-00246989, HAL.
- Marc Fleurbaey & Francois Maniquet, 2002.
"Fair Income Tax,"
Economics Working Papers
0021, Institute for Advanced Study, School of Social Science.
- Marc Fleurbaey & François Maniquet, 2008.
"Fair social orderings,"
- Roland Iwan Luttens & Erwon Ooghe, 2004.
"Is it fair to "make work pay"??,"
Center for Economic Studies - Discussion papers
ces0410, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- R. I. Luttens & E. Ooghe, 2005. "Is it fair to “make work pay”?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/283, Ghent University, Faculty of Economics and Business Administration.
- Maniquet, Francois & Sprumont, Yves, 2005.
"Welfare egalitarianism in non-rival environments,"
Journal of Economic Theory,
Elsevier, vol. 120(2), pages 155-174, February.
- Marc Fleurbaey & François Maniquet, 2006.
"Compensation and responsibility,"
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