Utilitarian preference for redistribution: a concern with max-min

George Waters

Journal of Economics and Finance, 2018, vol. 42, issue 2, No 9, 386-396

Abstract: Abstract This paper studies an optimal linear tax or basic income regime with an extensive margin in the supply of labor and a utililitarian welfare criterion. The presence the extensive margin in labor supply breaks the connection between allocational efficiency and aggregate utility maximization. In a general framework, some redistribution maximizes aggregate utility, but a lesser degree than what Rawls’ max-min criterion would require. Rawls’ concept of the Original Position is useful, but the rationality of the max-min criterion is questionable.

Keywords: Basic income; Original Position; Max-min; Redistribution (search for similar items in EconPapers)
JEL-codes: A13 H21 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s12197-017-9413-y

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