Monotonic Redistribution: Reconciling Performance-Based Allocation and Weighted Division

Takaaki Abe () and Satoshi Nakada ()
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Takaaki Abe: Graduate School of Economics, Waseda University, 1-6-1, Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan
Satoshi Nakada: Graduate School of Economics, Hitotsubashi University, 2-1, Naka, Kunitachi, Tokyo, 186-8601, Japan

International Game Theory Review (IGTR), 2017, vol. 19, issue 04, 1-14

Abstract: We show that a proportional taxation redistribution rule regarding heterogeneity among members of a society is implied by four axioms: efficiency, total wealth monotonicity, contribution monotonicity and additivity. Moreover, we offer another axiomatization with dropping additivity. Our rule is an extension of [Casajus, A. [2015] Monotonic distribution of performance-based allocations: A case for proportional taxation, Theor. Econ. 10, 887–892]’s redistribution rule in which each member of a society is identified only with his/her income.

Keywords: Proportional taxation; monotonicity; weighted division (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0219198917500220

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