Participation and Solidarity in Redistribution Mechanisms

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Title: Participation and Solidarity in Redistribution Mechanisms
Authors: Giménez Gómez, José Manuel | Peris, Josep E.
Research Group/s: Métodos Cuantitativos para la Economía
Center, Department or Service: Universidad de Alicante. Departamento de Métodos Cuantitativos y Teoría Económica
Keywords: Redistribution mechanism | Minimal rights | Solidarity | Participation | Claims feasibility
Knowledge Area: Fundamentos del Análisis Económico
Issue Date: 2015
Publisher: Charles University in Prague
Citation: Czech Economic Review. 2015, 9(1): 36-48
Abstract: Following Bossert (1995), we consider a model where personal income depends on two different characteristics: skills and effort. Luttens (2010) introduces claims that individuals have over aggregate income and that only depend on the effort they exert. Moreover, he proposes redistribution mechanisms in which solidarity is based on changes in a lower bound on what every individual deserves according to these claims: the so-called minimal rights (O’Neill 1982). A debatable consequence in one of Luttens’ mechanisms is that “the poorest individuals might up with a negative income” (Luttens 2010); that is, this mechanism does not satisfy participation, which turns out to be incompatible with claims feasibility, under Luttens’ assumptions. We present a new solidarity axiom that is compatible both with participation and claims feasibility, and we provide a mechanism satisfying these properties and our new additive solidarity axiom. Moreover, our mechanism satisfies additional properties, as priority, or respect of minimal rights.
Sponsor: This has been partially supported by the Spanish Ministry of Economy and Competitiveness funds under Project ECO2013-43119 and by Universitat Rovira i Virgili, Banco Santander and Generalitat de Catalunya under the project 2011LINE-06.
ISSN: 1802-4696 (Print) | 1805-9406 (Online)
Language: eng
Type: info:eu-repo/semantics/article
Rights: © Charles University in Prague
Peer Review: si
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