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Fair social orderings when agents have unequal production skills

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  • FLEURBAEY, Marc
  • MANIQUET, François

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
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Suggested Citation

  • FLEURBAEY, Marc & MANIQUET, François, 2005. "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).
  • Handle: RePEc:cor:louvrp:1805
    DOI: 10.1007/s00355-003-0294-y
    Note: In :Social Choice and Welfare, 24, 93-127, 2005.
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    File URL: http://dx.doi.org/10.1007/s00355-003-0294-y
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    Cited by:

    1. Aitor Calo-Blanco, 0. "Health and fairness with other-regarding preferences," Review of Economic Design, Springer;Society for Economic Design, vol. 0, pages 1-19.
    2. 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.
    3. Dirk Van de gaer & Xavier Ramos, 2020. "Measurement of inequality of opportunity based on counterfactuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 595-627, October.
    4. 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.
    5. Antoinette Baujard, 2016. "Welfare economics," Chapters, in: Gilbert Faccarello & Heinz D. Kurz (ed.),Handbook on the History of Economic Analysis Volume III, chapter 42, pages 611-624, Edward Elgar Publishing.
    6. 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.
    7. 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.
    8. Joanna Tyrowicz & Krzysztof Makarski & Marcin Bielecki, 2018. "Inequality in an OLG economy with heterogeneous cohorts and pension systems," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(4), pages 583-606, December.
    9. 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.
    10. X. Ramos & D. Van De Gaer, 2012. "Empirical Approaches to Inequality of Opportunity: Principles, Measures, and Evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/792, Ghent University, Faculty of Economics and Business Administration.
    11. 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.
    12. Dirk Van de gaer & Xavier Ramos, 0. "Measurement of inequality of opportunity based on counterfactuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 0, pages 1-33.
    13. MANIQUET, François, 2014. "Social ordering functions," CORE Discussion Papers 2014051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. 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.
    15. 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).
    16. 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.
    17. 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.
    18. Donald E. Campbell & Jerry S. Kelly, 2007. "Uniformly Bounded Information and Social Choice," Working Papers 49, Department of Economics, College of William and Mary.
    19. Valletta, G., 2012. "Health, fairness and taxation," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    20. Fleurbaey, Marc, 2007. "Two criteria for social decisions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 421-447, May.
    21. Paolo Giovanni Piacquadio, 2017. "A Fairness Justification of Utilitarianism," Econometrica, Econometric Society, vol. 85, pages 1261-1276, July.
    22. Dirk Van de gaer & Xavier Ramos, 2015. "Measurement of inequality of opportunity based on counterfactuals," Working Papers 388, ECINEQ, Society for the Study of Economic Inequality.
    23. 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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