full control (if only effort matters). Fairness requires to compensate individuals for differences in well-being caused by … the general properties of fair and efficient tax-benefit schemes. Next, we study two special cases income taxation and … tagging in detail. Finally, we derive testable conditions for the general case and discuss the empirical implementation. …

There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their … misfortune, while they allow them to enjoy the fruits of their effort. Such fairness considerations have been introduced in … based on much more information. We introduce fairness in a tax-benefit scheme that is based on several characteristics. The …

, redistribution. Amongst the themes are: the potential usefulness of apparently inefficient policy instruments in overcoming the self …-selection constraints on redistribution and limiting the damage that ill-intentioned policymakers can do; the continued (perhaps increased … redistribution may plausibly generate efficiency gains, the likelihood that some trade-off between equity and efficiency is …

-called “tagging”) or should they only be tied to reported incomes ? This question is addressed in a partial equilibrium setting … distinguishing two types of jobs and a distribution of worker types. In a system with tagging, there is clear evidence that the … distributed. Then, tagging is always suboptimal under a Rawlsian criterion. With a utilitarian criterion, the analysis shows that …

auditing procedure. Using the framework of optimal non-linear income taxation, we characterize second-best redistribution … arising between the government and social workers, whose job is to use tagging to determine eligibility for welfare benefits …. Tagging is imperfect in that it involves type I and II errors, and its accuracy depends on the effort of the social workers …

Should income transfers be conditional upon personal characteristics of the potential recipients (so-called tagging … reveals to others that one is unable to fend for oneself and one´s family. In this context, tagging is always suboptimal under … a maximin criterion. With a utilitarian criterion, tagging can only be recommended if the distribution of the intensity …

, based on justice theory and making use of Rossi’s factorial survey method, enables assessment of ideas of fairness in CEO …