Abstract
We study redistribution in a setting where individual responsibility and circumstance characteristics determine pre-tax income. We distinguish between ex ante and ex post versions of the key principles of compensation and reward. Furthermore, we distinguish between absolute and relative versions of reward. On the basis of these axioms, we provide characterizations of five familiar and two new redistribution mechanisms.
Original language | English |
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Number of pages | 29 |
Journal | Economic Theory |
DOIs | |
Publication status | E-pub ahead of print - 19 Jan 2021 |
JEL classifications
- d63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Keywords
- Compensation
- Reward
- Ex ante
- Ex post
- Responsibility