IDEAS home Printed from https://ideas.repec.org/a/eee/mateco/v96y2021ics030440682100080x.html
   My bibliography  Save this article

Bilateral redistribution

Author

Listed:
  • Chambers, Christopher P.
  • Moreno-Ternero, Juan D.

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.

Suggested Citation

  • Chambers, Christopher P. & Moreno-Ternero, Juan D., 2021. "Bilateral redistribution," Journal of Mathematical Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:mateco:v:96:y:2021:i:c:s030440682100080x
    DOI: 10.1016/j.jmateco.2021.102517
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030440682100080X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jmateco.2021.102517?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506, Elsevier.
    2. Biung-Ghi Ju & Juan Moreno-Ternero, 2011. "Progressive and merging-proof taxation," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 43-62, February.
    3. Moreno-Ternero, Juan D., 2011. "Voting over piece-wise linear tax methods," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 29-36, January.
    4. Juan D Moreno-Ternero & John E Roemer, 2006. "Impartiality, Priority, and Solidarity in the Theory of Justice," Econometrica, Econometric Society, vol. 74(5), pages 1419-1427, September.
    5. Moreno-Ternero, Juan D. & Roemer, John E., 2012. "A common ground for resource and welfare egalitarianism," Games and Economic Behavior, Elsevier, vol. 75(2), pages 832-841.
    6. Ju, Biung-Ghi & Miyagawa, Eiichi & Sakai, Toyotaka, 2007. "Non-manipulable division rules in claim problems and generalizations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 1-26, January.
    7. Christopher P. Chambers & Juan D. Moreno-Ternero, 2017. "Taxation and poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 153-175, January.
    8. Gale, David, 1974. "Exchange equilibrium and coalitions : An example," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 63-66, March.
    9. Balasko, Yves, 1975. "Some results on uniqueness and on stability of equilibrium in general equilibrium theory," Journal of Mathematical Economics, Elsevier, vol. 2(2), pages 95-118.
    10. Young, H. P., 1987. "Progressive taxation and the equal sacrifice principle," Journal of Public Economics, Elsevier, vol. 32(2), pages 203-214, March.
    11. Demuynck, Thomas & Rock, Bram De & Ginsburgh, Victor, 2016. "The transfer paradox in welfare space," Journal of Mathematical Economics, Elsevier, vol. 62(C), pages 1-4.
    12. M. Remzi Sanver & William Zwicker & Hervé Moulin & Jean-François Laslier, 2019. "The Future of Economic Design," Post-Print hal-02517300, HAL.
    13. Frank A. Cowell, 1985. "Measures of Distributional Change: An Axiomatic Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 135-151.
    14. Young, H Peyton, 1990. "Progressive Taxation and Equal Sacrifice," American Economic Review, American Economic Association, vol. 80(1), pages 253-266, March.
    15. K. J. Arrow & A. K. Sen & K. Suzumura (ed.), 2011. "Handbook of Social Choice and Welfare," Handbook of Social Choice and Welfare, Elsevier, edition 1, volume 2, number 2.
    16. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
    17. Thomson, William, 2012. "On The Axiomatics Of Resource Allocation: Interpreting The Consistency Principle," Economics and Philosophy, Cambridge University Press, vol. 28(3), pages 385-421, November.
    18. Orsetta Causa & James Browne & Anna Vindics, 2019. "Income redistribution across OECD countries: Main findings and policy implications," OECD Economic Policy Papers 23, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    2. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "Laissez-faire or full redistribution?," Economics Letters, Elsevier, vol. 218(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomson, William, 2015. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: An update," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 41-59.
    2. Christopher P. Chambers & Juan D. Moreno-Ternero, 2017. "Taxation and poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 153-175, January.
    3. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "Laissez-faire or full redistribution?," Economics Letters, Elsevier, vol. 218(C).
    4. Long, Yan & Sethuraman, Jay & Xue, Jingyi, 2021. "Equal-quantile rules in resource allocation with uncertain needs," Journal of Economic Theory, Elsevier, vol. 197(C).
    5. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    6. Jingyi Xue, 2018. "Fair division with uncertain needs," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(1), pages 105-136, June.
    7. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2012. "A unifying framework for the problem of adjudicating conflicting claims," Journal of Mathematical Economics, Elsevier, vol. 48(2), pages 107-114.
    8. Jens Hougaard & Juan Moreno-Ternero & Lars Østerdal, 2013. "Rationing with baselines: the composition extension operator," Annals of Operations Research, Springer, vol. 211(1), pages 179-191, December.
    9. Biung†Ghi Ju & Juan D. Moreno†Ternero, 2017. "Fair Allocation Of Disputed Properties," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(4), pages 1279-1301, November.
    10. Moreno-Ternero, Juan D. & Roemer, John E., 2012. "A common ground for resource and welfare egalitarianism," Games and Economic Behavior, Elsevier, vol. 75(2), pages 832-841.
    11. René Brink & Juan D. Moreno-Ternero, 2017. "The reverse TAL-family of rules for bankruptcy problems," Annals of Operations Research, Springer, vol. 254(1), pages 449-465, July.
    12. Flores-Szwagrzak, Karol & Østerdal, Lars Peter, 2024. "Rationalizing Sharing Rules," Working Papers 17-2024, Copenhagen Business School, Department of Economics.
    13. Alcalde-Unzu, Jorge & Moreno-Ternero, Juan D. & Weber, Shlomo, 2022. "The measurement of the value of a language," Journal of Economic Theory, Elsevier, vol. 203(C).
    14. Alcalde-Unzu, Jorge & Gallo, Oihane & Inarra, Elena & Moreno-Ternero, Juan D., 2024. "Solidarity to achieve stability," European Journal of Operational Research, Elsevier, vol. 315(1), pages 368-377.
    15. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "An axiomatic approach towards pandemic performance indicators," Economic Modelling, Elsevier, vol. 116(C).
    16. Alex Krumer & Juan D. Moreno-Ternero, 2023. "The Allocation of Additional Slots for the FIFA World Cup," Journal of Sports Economics, , vol. 24(7), pages 831-850, October.
    17. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    18. Biung-Ghi Ju & Juan D. Moreno-Ternero, 2023. "Taxation behind the veil of ignorance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(1), pages 165-181, January.
    19. Satya R. Chakravarty & Palash Sarkar, 2022. "Inequality minimising subsidy and taxation," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(1), pages 53-67, May.
    20. Moreno-Ternero, Juan D. & Roemer, John E., 2012. "A common ground for resource and welfare egalitarianism," Games and Economic Behavior, Elsevier, vol. 75(2), pages 832-841.

    More about this item

    Keywords

    Income redistribution; Axioms; Stability; Continuity; No transfer paradox;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:96:y:2021:i:c:s030440682100080x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jmateco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.