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, François, . "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).
- M. Fleurbaey & F. Maniquet, 2008.
"Fair social orderings,"
Springer, vol. 34(1), pages 25-45, January.
- Marc Fleurbaey & Fran�ois Maniquet, 2006.
"Fair Income Tax,"
Review of Economic Studies,
Oxford University Press, vol. 73(1), pages 55-83.
- Marc Fleurbaey & Francois Maniquet, 2002. "Fair Income Tax," Economics Working Papers 0021, Institute for Advanced Study, School of Social Science.
- FLEURBAEY, Marc & MANIQUET, François, . "Fair income tax," CORE Discussion Papers RP -1845, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Marc Fleurbaey & François Maniquet, 2006.
"Compensation and responsibility,"
- MANIQUET, François & SPRUMONT, Yves, .
"Welfare egalitarianism in non-rival environments,"
CORE Discussion Papers RP
-1826, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
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