We establish the precise connections between progressive taxation and inequality reduction, in a setting where the level of tax revenue to be raised is endogenously fixed and tax schemes are balanced. We show that, in contrast with the traditional literature on taxation, the equivalence between...

Progressivity, inequality reduction and merging-proofness are three wellknown axioms in taxation. We investigate implications of each of the three axioms through characterizations of several families of taxation rules and their logical relations. We also study the preservation of these axioms...

This paper reports an experimental study on three well-known solutions for problems of adjudicating con icting claims: the constrained equal-awards, the proportional, and the constrained equal-losses rules. We first let subjects play three games designed such that the unique equilibrium...

Forgiveness is an ethical ideal that advocates that a fresh start should be conferred on those individuals who regret their past choices. Grounded on such a principle, Fleurbaey (2005) proposes the use of the equivalent endowment as the proper measure of the welfare loss experienced by those who...