The Czech Economic Review is published by Charles University in Prague. The journal was founded in 2007 as a descendant to a traditional Czech-written outlet, Acta Universitatis Carolinae Oeconomica (AUCO). Three issues are published per volume. All articles and communications are available online free of charge. Printed copies can also be ordered.
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CZECH ECONOMIC REVIEW, Vol 2015 No 1 (2016), 36–48
Participation and Solidarity in Redistribution Mechanisms
José-Manuel Giménez-Gómez, Josep E. Peris
published online: 19. 10. 2015
abstract
Following Bossert (1995), we consider a model where personal income depends on two different characteristics: skills and effort. Luttens (2010) introduces claims that individuals have over aggregate income and that only depend on the effort they exert. Moreover, he proposes redistribution mechanisms in which solidarity is based on changes in a lower bound on what every individual deserves according to these claims: the so-called minimal rights (O’Neill 1982). A debatable consequence in one of Luttens’ mechanisms is that “the poorest individuals might up with a negative income” (Luttens 2010); that is, this mechanism does not satisfy participation, which turns out to be incompatible with claims feasibility, under Luttens’ assumptions. We present a new solidarity axiom that is compatible both with participation and claims feasibility, and we provide a mechanism satisfying these properties and our new additive solidarity axiom. Moreover, our mechanism satisfies additional properties, as priority, or respect of minimal rights.
keywords: redistribution mechanism; minimal rights; solidarity; participation; claims feasibility
157 x 230 mm
periodicity: 3 x per year
ISSN: 1802-4696
E-ISSN: 1805-9406