EconPapers    
Economics at your fingertips  
 

Inequality and Inefficiency in Joint Projects

Debraj Ray (), Jean-Marie Baland () and Olivier Dagnelie ()

Post-Print from HAL

Abstract: A group of agents voluntarily participates in a joint project, in which efforts are not perfectly substitutable. The output is divided according to some given vector of shares. A share vector is unimprovable if no other share vector yields a higher sum of payoffs. When the elasticity of substitution across efforts is two or lower, only the perfectly equal share vector is unimprovable, and all other vectors can be improved via Lorenz domination. For higher elasticities of substitution, perfect equality is no longer unimprovable. Our results throw light on the connections between inequality and collective action.

Keywords: Inequality; Collective Action; Substitutability (search for similar items in EconPapers)
Date: 2007-07
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00160753/en/
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed

Published, The Economic Journal, 2007, 117, 522, 922-935

Downloads: (external link)
http://halshs.archives-ouvertes.fr/docs/00/16/07/53/PDF/RayBalandDagnelie.pdf (application/pdf)

Related works:
Journal Article: Inequality and Inefficiency in Joint Projects (2007) Downloads
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: http://EconPapers.repec.org/RePEc:hal:journl:halshs-00160753

Access Statistics for this paper

More papers in Post-Print from HAL
Series data maintained by CCSD ().

 
Page updated 2014-10-23
Handle: RePEc:hal:journl:halshs-00160753