Abstract
We study redistribution in a setting where individual responsibility and circumstance characteristics determine pre-tax income. We distinguish between ex ante and ex post versions of the key principles of compensation and reward. Furthermore, we distinguish between absolute and relative versions of reward. On the basis of these axioms, we provide characterizations of five familiar and two new redistribution mechanisms.
Original language | English |
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Pages (from-to) | 947-975 |
Journal | Economic Theory |
Volume | 73 |
Issue number | 4 |
DOIs | |
Publication status | Published - Jun 2022 |
Keywords
- Compensation
- Reward
- Ex ante
- Ex post
- Responsibility