TY - JOUR
T1 - Reconciling the Rawlsian and the utilitarian approaches to the maximization of social welfare
AU - Stark, Oded
AU - Jakubek, Marcin
AU - Falniowski, Fryderyk
PY - 2014/3
Y1 - 2014/3
N2 - Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals' utility functions incorporate distaste for low relative income, a utilitarian will select exactly the same income distribution as a Rawlsian.
AB - Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals' utility functions incorporate distaste for low relative income, a utilitarian will select exactly the same income distribution as a Rawlsian.
KW - Deadweight loss
KW - Distaste for low relative income
KW - Maximization of social welfare
KW - Rawlsian social welfare function
KW - Utilitarian social welfare function
UR - http://www.scopus.com/inward/record.url?scp=84893755144&partnerID=8YFLogxK
U2 - 10.1016/j.econlet.2013.11.019
DO - 10.1016/j.econlet.2013.11.019
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AN - SCOPUS:84893755144
SN - 0165-1765
VL - 122
SP - 439
EP - 444
JO - Economics Letters
JF - Economics Letters
IS - 3
ER -
