Bilateral redistribution

Christopher Chambers and Juan Moreno-Ternero

Journal of Mathematical Economics, 2021, vol. 96, issue C

Abstract: We explore the implications of three basic and intuitive axioms for income redistribution problems: continuity, no transfer paradox and stability. The combination of the three axioms characterizes in the two-agent case a large family of rules, which we call threshold rules. For each level of total income in society, a threshold is considered for each agent. It is impossible for both agents to be below their respective thresholds. If an agent’s income is below the threshold, the difference is redistributed from the other agent; otherwise, the rule imposes laissez-faire.

Keywords: Income redistribution; Axioms; Stability; Continuity; No transfer paradox (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Working Paper: Bilateral Redistribution (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:96:y:2021:i:c:s030440682100080x

DOI: 10.1016/j.jmateco.2021.102517

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