Designing a Basic Income System with a Social Welfare Function

Ronny Aboudi, Dominique Thon and Mingli Zheng ()

Journal of Public Economic Theory, 2014, vol. 16, issue 4, 546-568

Abstract: There is an irreducible conflict between, on the one hand, the desire to allocate income in society in an equitable way and, on the other, the desire to alleviate poverty. The conflict materializes itself in the problem of designing a basic income (or negative income tax) system which requires formulating a workable compromise. This paper approaches the problem through solving a mathematical program whose utility-based objective function explicitly embodies both considerations. The solution describes a simple basic income system and its comparative statics indicate how the specification of the objective function leads to a more, or less, pro-poor solution.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1111/jpet.12074 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:16:y:2014:i:4:p:546-568

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().