VALUE PRESERVING WELFARE WEIGHTS FOR SOCIAL OPTIMIZATION PROBLEMS

• 成果类型: Article
• 署名作者: Anagnostopoulos, Alexis; Carceles-Poveda, Eva; Tauman, Yair
• 署名单位: State University of New York (SUNY) System; Stony Brook University; Reichman University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12530
• 发表日期: 2021
• 页码: 1627-1653
• 关键词: Income taxation; tax; GROWTH; MARKETS; POLICY

摘要

We propose endogenous, value preserving (VP) welfare weights as an alternative to equal weights utilitarianism. VP weights require that the contribution of an agent's endowments to social welfare is proportional to the contribution of the final allocation to his welfare. Under three axioms, the per unit contribution of a good to welfare is shown to equal the gradient of the welfare function. VP weights coincide with Negishi weights in frictionless environments but prescribe redistribution toward a good's owner when the good's social value exceeds its market value. When ability is treated as an endowment, VP weights reward ability and effort.