This book deals with the problems of redistribution if different kinds of taxes are used as instruments. It throws light on the equity, efficiency and insurance aspects of taxation, and treats the topic at a high theoretical level. Using two ordinal equity criteria, it is shown in the first part...

Envy-free and Pareto optimal allocations never exist in large economies with production, if there is enough variation with respect to preferences and innate abilities of the agents. If distributional equity is given priority only second best envy-free allocations may be considered. Those...