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Monotonic redistribution of performance-based allocations: a case for proportional taxation

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  • Casajus, André

    (Economics and Information Systems, HHL Leipzig Graduate School of Mangement)

Abstract

Within a simple setup, we show that proportional taxation is implied by three properties: efficiency, symmetry, and monotonicity. Efficiency: redistribution has no cost. Symmetry: members of the society with the same performance obtain the same reward after redistribution. Monotonicity: whenever both the performance of a certain member of the society as well as the overall performance of the society do not decrease, then this member's reward after redistribution does not decrease.

Suggested Citation

  • Casajus, André, 2015. "Monotonic redistribution of performance-based allocations: a case for proportional taxation," Theoretical Economics, Econometric Society, vol. 10(3), September.
    • Handle: RePEc:the:publsh:1897
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    References listed on IDEAS

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    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521887427.
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    Cited by:

    1. Abe, Takaaki & Nakada, Satoshi, 2023. "The in-group egalitarian Owen values," Games and Economic Behavior, Elsevier, vol. 142(C), pages 1-16.
    2. Sylvain Ferrières, 2016. "Nullified equal loss property and equal division values," Working Papers 2016-06, CRESE.
    3. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    4. Koji Yokote & Takumi Kongo & Yukihiko Funaki, 2021. "Redistribution to the less productive: parallel characterizations of the egalitarian Shapley and consensus values," Theory and Decision, Springer, vol. 91(1), pages 81-98, July.
    5. Sylvain Ferrières, 2017. "Nullified equal loss property and equal division values," Theory and Decision, Springer, vol. 83(3), pages 385-406, October.
    6. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "Laissez-faire or full redistribution?," Economics Letters, Elsevier, vol. 218(C).
    7. Takaaki Abe & Satoshi Nakada, 2019. "The weighted-egalitarian Shapley values," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(2), pages 197-213, February.
    8. Casajus, André, 2016. "Differentially monotonic redistribution of income," Economics Letters, Elsevier, vol. 141(C), pages 112-115.
    9. Takaaki Abe & Satoshi Nakada, 2017. "Monotonic Redistribution: Reconciling Performance-Based Allocation and Weighted Division," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 19(04), pages 1-14, December.
    10. Zou, Zhengxing & Tan, Zhibin, 2023. "Axiomatizations of convex compromise rules for redistribution of non-negative income," Economics Letters, Elsevier, vol. 229(C).
    11. Koji Yokote & Yukihiko Funaki, 2017. "Monotonicity implies linearity: characterizations of convex combinations of solutions to cooperative games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(1), pages 171-203, June.

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    More about this item

    Keywords

    Redistribution; proportional taxation; efficiency; symmetry; monotonicity;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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