Consumption rigths: a market mechanism to redistribute wealth
In an exchange economy with only private consumption goods we propose acompetitive mechanism to reach any income distribution. We introduce the socalled consumption rights, which is a real parameter that modifies thebudgetaryconstraint of individuals but does not participate in the utility functions.Consumption rights can be traded in the market, which is the main diferencewith slack parameters, as fiat money or tax inflation, widely known asmethods tomodify the distribution of wealth. The policy maker control variables areboththe amount of rights assigned to each individual and a pricing rule thatdefines the rate of exchange between rights and wealth. The onlyintervention of the planner will be trough the definition of the policy,because the redistribution of wealth will be the consequence of thecompetitive exchange among consumers.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
- Guillermo A. Calvo & Pablo E. Guidotti, 1993. "On the Flexibility of Monetary Policy: The Case of the Optimal Inflation Tax," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 667-687.
- Brown, Donald J., 1991. "Equilibrium analysis with non-convex technologies," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 36, pages 1963-1995 Elsevier.
- Bonnisseau, J.-M. & Cornet, B., 1986.
"Valuation equilibrium and Pareto optimum in nonconvex economies,"
CORE Discussion Papers
1986036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bonnisseau, Jean-Marc & Cornet, Bernard, 1988. "Valuation equilibrium and pareto optimum in non-convex economies," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 293-308, April.
- Jean-Marc Bonnisseau & Bernard Cornet, 1988. "Valuation equilibrium and pareto optimum in non-convex economies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00187225, HAL.
- BONNISSEAU, Jean-Marc & CORNET, Bernard, . "Valuation equilibrium and Pareto optimum in non-convex economies," CORE Discussion Papers RP 817, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Montero, Juan-Pablo, 2001. "Multipollutant Markets," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 762-74, Winter.
- John E. Roemer, 1986. "Equality of Resources Implies Equality of Welfare," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 751-784.
- Makarov, V. L., 1981. "Some results on general assumptions about the existence of economic equilibrium," Journal of Mathematical Economics, Elsevier, vol. 8(1), pages 87-99, March.
- Jovanovic, Boyan, 1982. "Inflation and Welfare in the Steady State," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 561-77, June.
- Myles,Gareth D., 1995. "Public Economics," Cambridge Books, Cambridge University Press, number 9780521497695, September.
- Balasko, Yves & Shell, Karl, 1981. "The overlapping-generations model. II. The case of pure exchange with money," Journal of Economic Theory, Elsevier, vol. 24(1), pages 112-142, February.
- Balasko, Yves, 1982. "Equilibria and efficiency in the fixprice setting," Journal of Economic Theory, Elsevier, vol. 28(1), pages 113-127, October.
- Peter J. Hammond, 1999.
"Equal Rights to Trade and Mediate,"
99019, Stanford University, Department of Economics.
- AUMANN, Robert J. & DREZE, Jacques H., .
"Values of markets with satiation or fixed prices,"
CORE Discussion Papers RP
722, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Narayana R. Kocherlakota, 1996.
"Money is memory,"
218, Federal Reserve Bank of Minneapolis.
- John Pezzey, 1992. "The Symmetry between Controlling Pollution by Price and Controlling It by Quantity," Canadian Journal of Economics, Canadian Economics Association, vol. 25(4), pages 983-91, November.
- Aumann, Robert J & Kurz, Mordecai, 1977. "Power and Taxes," Econometrica, Econometric Society, vol. 45(5), pages 1137-61, July.
When requesting a correction, please mention this item's handle: RePEc:udc:wpaper:wp215. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatiana Reyes)
If references are entirely missing, you can add them using this form.