Can a concern for status reconcile diverse social welfare programs?

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Show simple item record Stark, Oded Jakubek, Marcin 2016-09-30T12:35:57Z 2016-09-30T12:35:57Z 2016-09-30
dc.identifier.other 477615880 de_DE
dc.identifier.uri de_DE
dc.description.abstract Let there be two individuals: “rich,” and “poor.” Due to inefficiency of the income redistribution policy, if a social planner were to tax the rich in order to transfer to the poor, only a fraction of the taxed income would be given to the poor. Under such inefficiency and a standard utility specification, a Rawlsian social planner who seeks to maximize the utility of the worst-off individual will select a different allocation of incomes than a utilitarian social planner who seeks to maximize the sum of the individuals’ utilities. However, when individuals prefer not only to have more income but also not to have low status conceptualized as low relative income, and when this distaste is incorporated in the individuals’ utility functions with a weight that is greater than a specified critical level, then a utilitarian social planner will select the very same income distribution as a Rawlsian social planner. en
dc.language.iso en de_DE
dc.publisher Universität Tübingen de_DE
dc.rights ubt-podno de_DE
dc.rights.uri de_DE
dc.rights.uri en
dc.subject.classification Volkswirtschaft de_DE
dc.subject.ddc 330 de_DE
dc.subject.other Maximization of social welfare en
dc.subject.other Rawlsian social welfare function en
dc.subject.other Utilitarian social welfare function en
dc.subject.other Inefficient policy of income redistribution en
dc.subject.other Distaste for low status en
dc.title Can a concern for status reconcile diverse social welfare programs? en
dc.type Article de_DE
utue.publikation.fachbereich Wirtschaftswissenschaften de_DE
utue.publikation.fakultaet 6 Wirtschafts- und Sozialwissenschaftliche Fakultät de_DE
utue.publikation.source University of Tübingen Working Papers in Economics and Finance ; No. 92 de_DE


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