On how to divide a budget according to population and wealth

Ricardo Martinez ()

No 20/10, ThE Papers from Department of Economic Theory and Economic History of the University of Granada.

Abstract: We study the problem of dividing a budget among countries based on their population and wealth. We focus on order preservation properties that ensure higher transfers to those countries with larger populations and, at the same time, introduce a redistribution policy so that nations with lower wealth per capita obtain higher transfers per capita. We also require the allocation method to satisfy other principles related to process stability, including scale invariance, agenda independence, budget update, and grouping. The findings show that the unique alternative to fulfilling these principles is to allocate the budget in proportion to the population.

Keywords: Allocation problem; budget; population; wealth; fairness; order preservation. (search for similar items in EconPapers)
JEL-codes: D6 D7 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2020-09-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers20_10.pdf (application/pdf)

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:gra:wpaper:20/10

Access Statistics for this paper

More papers in ThE Papers from Department of Economic Theory and Economic History of the University of Granada. Campus Universitario de Cartuja. Contact information at EDIRC.
Bibliographic data for series maintained by Angel Solano Garcia. ().