Fair Redistribution of Performance-Based Allocations: A Case for Proportional Taxation

HHL Working Paper 134

11 Pages Posted: 22 Mar 2014

See all articles by André Casajus

André Casajus

Handelshochschule Leipzig (HHL)

Date Written: March 16, 2014

Abstract

Within a simple setup, we show that fair redistribution of performance-based allocations implies proportional taxation. Fair redistribution is characterized by three properties: efficiency, i.e., redistribution has no cost. Anonymity, i.e., rewards after redistribution do not depend on the identity of the members of the society but only on their performance. Weak monotonicity, i.e., whenever both the performance of a certain member of the society as well as the overall performance of the society increase, then this member's reward after redistribution does not decrease.

Keywords: Solidarity, redistribution, proportional taxation, efficiency, anonymity, weak monotonicity

JEL Classification: D63, H20

Suggested Citation

Casajus, André, Fair Redistribution of Performance-Based Allocations: A Case for Proportional Taxation (March 16, 2014). HHL Working Paper 134, Available at SSRN: https://ssrn.com/abstract=2412450 or http://dx.doi.org/10.2139/ssrn.2412450

André Casajus (Contact Author)

Handelshochschule Leipzig (HHL) ( email )

Jahnallee 59
Leipzig, 04109
Germany

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