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Laissez-Faire or Full Redistribution?

Author

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  • Ricardo Martínez

    (Department of Economic Theory and Economic History, University of Granada.)

  • Juan D Moreno Ternero

    (Department of Economics, Universidad Pablo de Olavide.)

Abstract

We explore the implications of three basic and intuitive axioms for income redistribution problems: equal treatment of equals, additivity and stability. We show that the combination of the three axioms characterizes two focal and polar rules: laissez-faire and full redistribution.

Suggested Citation

  • Ricardo Martínez & Juan D Moreno Ternero, 2022. "Laissez-Faire or Full Redistribution?," ThE Papers 22/09, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:22/09
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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers22_09.pdf
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    References listed on IDEAS

    as
    1. John Maynard Keynes, 2010. "The End of Laissez-Faire," Palgrave Macmillan Books, in: Essays in Persuasion, chapter 2, pages 272-294, Palgrave Macmillan.
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    4. Chambers, Christopher P. & Moreno-Ternero, Juan D., 2021. "Bilateral redistribution," Journal of Mathematical Economics, Elsevier, vol. 96(C).
    5. Ju, Biung-Ghi & Kim, Min & Kim, Suyi & Moreno-Ternero, Juan D., 2021. "Fair international protocols for the abatement of GHG emissions," Energy Economics, Elsevier, vol. 94(C).
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    10. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2020. "Sharing the Revenues from Broadcasting Sport Events," Management Science, INFORMS, vol. 66(6), pages 2417-2431, June.
    11. Juan D Moreno-Ternero & John E Roemer, 2006. "Impartiality, Priority, and Solidarity in the Theory of Justice," Econometrica, Econometric Society, vol. 74(5), pages 1419-1427, September.
    12. Christopher P. Chambers & Juan D. Moreno-Ternero, 2017. "Taxation and poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 153-175, January.
    13. Young, H. P., 1987. "Progressive taxation and the equal sacrifice principle," Journal of Public Economics, Elsevier, vol. 32(2), pages 203-214, March.
    14. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2022. "On the axiomatic approach to sharing the revenues from broadcasting sports leagues," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(2), pages 321-347, February.
    15. Casajus, André, 2015. "Monotonic redistribution of non-negative allocations: A case for proportional taxation revisited," Economics Letters, Elsevier, vol. 136(C), pages 95-98.
    16. Eric J. Allen & Patricia M. Dechow & Devin G. Pope & George Wu, 2017. "Reference-Dependent Preferences: Evidence from Marathon Runners," Management Science, INFORMS, vol. 63(6), pages 1657-1672, June.
    17. Casajus, André, 2015. "Monotonic redistribution of performance-based allocations: a case for proportional taxation," Theoretical Economics, Econometric Society, vol. 10(3), September.
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    Cited by:

    1. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    2. Zou, Zhengxing & Tan, Zhibin, 2023. "Axiomatizations of convex compromise rules for redistribution of non-negative income," Economics Letters, Elsevier, vol. 229(C).

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    More about this item

    Keywords

    redistribution problems; laissez-faire; full redistribution; equal treatment of equals; additivity; stability.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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