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The evaluation of social risk equity for alternative probability distributions over the potential sets of fatalities is analyzed axiomatically. Fishburn and Straffin [Equity considerations in public risks valuation, Operatons Research 37 (1999), 229-239] have identified a necessary and...
Persistent link: https://www.econbiz.de/10010738551
The collective rationality requirement in Arrow's theorem is weakened to demanding a social quasi-ordering (a reflexive and transitive but not necessarily complete binary relation). This weakening leads to the existence of a group such that (a) whenever all members of the group strictly prefer...
Persistent link: https://www.econbiz.de/10010864273
The axioms that characterize the generalized Gini social evaluation orderings for one-dimensional distributions are extended to the multidimensional attributes case. A social evaluation ordering is shown to have a two-stage aggregation representation if these axioms and a separability assumption...
Persistent link: https://www.econbiz.de/10010750546
Optimal nonlinear taxation of income and savings is considered in a two-period model with two individuals who have additively separable preferences and who only differ in their skill levels. When the government can commit to its second period policy, taxes on savings do not form part of the...
Persistent link: https://www.econbiz.de/10005595872
Social welfare dominance criteria based on critical-level generalized utilitarian social welfare functions are investigated. An analogue of a generalized Lorenz curve called a generalized concentration curve is introduced. For a fixed critical utility level c, a partial order of utility...
Persistent link: https://www.econbiz.de/10005595874
The impact of changing an individual's skill level on the solution to a finite population version of the Mirrlees optimal nonlinear income tax problem with quasilinear-in-leisure preferences is investigated. It is shown that it is possible to sign the directions of change in everyone's optimal...
Persistent link: https://www.econbiz.de/10005595887
The Nash equilibria of a tax-setting game between two governments who can set nonlinear income tax schedules for a perfectly mobile workforce whose members differ in unobserved skill levels are examined. Each government maximizes the average utility of its residents. It is shown that while...
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