Reconciling the Rawlsian and the utilitarian approaches to the maximization of social welfare

Oded Stark, Marcin Jakubek and Fryderyk Falniowski

No 162881, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals’ utility functions incorporate distaste for low relative income, a utilitarian will select exactly the same income distribution as a Rawlsian.

Keywords: Institutional and Behavioral Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 29
Date: 2014-01-24
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-sog
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Reconciling the Rawlsian and the utilitarian approaches to the maximization of social welfare (2014)
Working Paper: Reconciling the Rawlsian and the utilitarian approaches to the maximization of social welfare (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:162881

DOI: 10.22004/ag.econ.162881

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