Article ID Journal Published Year Pages File Type
5058300 Economics Letters 2016 4 Pages PDF
Abstract

•We suggest a differential version of monotonicity for redistribution rules.•Increasing income differentials entail increasing post-redistribution differentials.•Differential monotonicity implies a flat tax combined with a basic income.

We suggest a differential version of monotonicity for redistribution rules: whenever the differential of two persons' income weakly increases, then the differential of their post-redistribution rewards also weakly increases. Together with efficiency and non-negativity, differential monotonicity characterizes redistribution via taxation at a fixed rate and equal distribution of the total tax revenue.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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