scholarly journals The Equal-Sacrifice Social Welfare Function with an Application to Optimal Income Taxation

2020 ◽  
Author(s):  
Kristoffer Berg ◽  
Paolo Giovanni Piacquadio
Keyword(s):  
Social Welfare ◽  
Social Welfare Function ◽  
Income Taxation ◽  
Optimal Income Taxation ◽  
Equal Sacrifice

scholarly journals Optimal Policy with Heterogeneous Preferences

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Social Welfare ◽  
Public Goods ◽  
Optimal Policy ◽  
Income Tax ◽  
Social Welfare Function ◽  
Income Taxation ◽  
Heterogeneous Preferences ◽  
Commodity Taxation ◽  
Policy Rules ◽  
The Social

Abstract Optimal policy rules—including those regarding income taxation, commodity taxation, public goods, and externalities—are typically derived in models with homogeneous preferences. This article reconsiders many central results for the case in which preferences for commodities, public goods, and externalities are heterogeneous. When preference differences are observable, standard second-best results in basic settings are unaffected, except those for the optimal income tax. Optimal levels of income taxation may be higher, the same, or lower on types who derive more utility from various goods, depending on the nature of preference differences and the concavity of the social welfare function. When preference differences are unobservable, all policy rules may change. The determinants of even the direction of optimal rule adjustments are many and subtle.

scholarly journals Optimal Income Taxation For Transfer Payments Under Different Social Welfare Criteria

1974 ◽  
Vol 88 (4) ◽  
pp. 656 ◽  
Author(s):  
Robert Cooter Elhanan Helpman
Keyword(s):  
Social Welfare ◽  
Income Taxation ◽  
Optimal Income Taxation ◽  
Transfer Payments

Tagging and Income Taxation: Theory and an Application

2010 ◽  
Vol 2 (1) ◽  
pp. 31-50 ◽  
Author(s):  
Helmuth Cremer ◽  
Firouz Gahvari ◽  
Jean-Marie Lozachmeur
Keyword(s):  
Social Welfare Function ◽  
The Other ◽  
Income Taxation ◽  
High Wage ◽  
Optimal Income Taxation ◽  
Constant Elasticity ◽  
First Order ◽  
The Us ◽  
Welfare Implications ◽  
Wage Earners

We derive a set of analytical results for optimal income taxation with tags using quasilinear preferences and a Rawlsian social welfare function. Secondly, assuming a constant elasticity of labor supply and log-normality of the skills distribution, we analytically identify the winners and losers of tagging. Third, we prove that if the skills distribution in one group first-order stochastically dominates the other, tagging calls for redistribution from the former to the latter group. Finally, we calibrate our model to the US workers using gender as tag. Welfare implications are dramatic. Only male high-wage earners lose. Everyone else gains, some substantially. (JEL H21, H23, H24)

scholarly journals Optimal Income Taxation Theory and Principles of Fairness

2018 ◽  
Vol 56 (3) ◽  
pp. 1029-1079 ◽  
Author(s):  
Marc Fleurbaey ◽  
François Maniquet
Keyword(s):  
Social Welfare ◽  
Public Economics ◽  
Income Taxation ◽  
Labor Income ◽  
Optimal Income Taxation ◽  
Recent Interest ◽  
The Social ◽  
Fairness Principles ◽  
Main Message ◽  
Labor Income Taxation

The achievements and limitations of the classical theory of optimal labor-income taxation based on social welfare functions are now well known. Even though utilitarianism still dominates public economics, recent interest has arisen for broadening the normative approach and making room for fairness principles such as desert or responsibility. Fairness principles sometimes provide immediate recommendations about the relative weights to assign to various income ranges, but in general require a careful choice of utility representations embodying the relevant interpersonal comparisons. The main message of this paper is that the traditional tool of welfare economics, the social welfare function framework, is flexible enough to incorporate many approaches, from egalitarianism to libertarianism. ( JEL D63, H21, H24, J24)

Remittances and the Politics of Austerity

2018 ◽  
Author(s):  
Roy Germano
Keyword(s):  
Developing Countries ◽  
Social Welfare ◽  
Economic Crisis ◽  
Social Welfare Function ◽  
Global Markets ◽  
Welfare Programs ◽  
Social Instability ◽  
Social Welfare Programs ◽  
Poor Families ◽  
International Migrants

Remittances sent by international migrants have become an increasingly important source of social welfare in the developing world. This chapter explores what remittances are, why migrants send them, and how poor families use them. I argue in this chapter that remittances are more than just gifts from one relative to another. They play a larger social welfare role that complements funds that governments spend on social welfare programs. This social welfare function has become particularly important in recent decades as developing countries have prioritized austerity and integrated into volatile global markets. I argue that by filling a welfare gap in an age of austerity, remittances help to reduce the suffering and anger that so often trigger political and social instability during times of economic crisis.

scholarly journals Introducing fairness in Norwegian air ambulance base location planning

2021 ◽  
Vol 29 (1) ◽  
Author(s):  
Caroline J. Jagtenberg ◽  
Maaike A. J. Vollebergh ◽  
Oddvar Uleberg ◽  
Jo Røislien
Keyword(s):  
Social Welfare ◽  
Social Welfare Function ◽  
Mathematical Optimization ◽  
Population Coverage ◽  
Air Ambulance ◽  
Service Levels ◽  
Remote Areas ◽  
The North ◽  
Time Threshold ◽  
Essential Question

Abstract Background A primary task of the Norwegian helicopter emergency medical services (HEMS) is to provide advanced medical care to the critical ill and injured outside of hospitals. Where HEMS bases are located, directly influences who in the population can be reached within a given response time threshold and who cannot. When studying the locations of bases, the focus is often on efficiency, that is, maximizing the total number of people that can be reached within a given set time. This approach is known to benefit people living in densely populated areas, such as cities, over people living in remote areas. The most efficient solution is thus typically not necessarily a fair one. This study aims to incorporate fairness in finding optimal air ambulance base locations. Methods We solve multiple advanced mathematical optimization models to determine optimal helicopter base locations, with different optimization criteria related to the level of aversion to inequality, including the utilitarian, Bernoulli-Nash and iso-elastic social welfare functions. This is the first study to use the latter social welfare function for HEMS. Results Focusing on efficiency, a utilitarian objective function focuses on covering the larger cities in Norway, leaving parts of Norway largely uncovered. Including fairness by rather using an iso-elastic social welfare function in the optimization avoids leaving whole areas uncovered and in particular increases service levels in the north of Norway. Conclusions Including fairness in determining optimal HEMS base locations has great impact on population coverage, in particular when the number of base locations is not enough to give full coverage of the country. As results differ depending on the mathematical objective, the work shows the importance of not only looking for optimal solutions, but also raising the essential question of ‘optimal with respect to what’.

scholarly journals Optimal Income Taxation: Mirrlees Meets Ramsey

2021 ◽  
Author(s):  
Jonathan Heathcote ◽  
Hitoshi Tsujiyama
Keyword(s):  
Income Taxation ◽  
Optimal Income Taxation

The NIP graph of a social welfare function

2009 ◽  
Vol 33 (3) ◽  
pp. 415-421 ◽  
Author(s):  
Lee R. Gibson ◽  
Robert C. Powers
Keyword(s):  
Social Welfare ◽  
Social Welfare Function

Optimal Income Taxation with Unemployment and Wage Responses: A Sufficient Statistics Approach

2017 ◽  
Author(s):  
Kory Kroft ◽  
Kavan Kucko ◽  
Etienne Lehmann ◽  
Johannes F. Schmieder
Keyword(s):  
Income Taxation ◽  
Optimal Income Taxation ◽  
Sufficient Statistics

Construction of a social welfare function under consideration of conditional self-interest

2021 ◽  
Vol 6 (3) ◽  
pp. 263
Author(s):  
Sabine Spangenberg ◽  
David M. Munyinyi
Keyword(s):  
Social Welfare ◽  
Social Welfare Function ◽  
Self Interest
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