In this note, we study two principles of proportional transfers which are more egalitarian than the Pigou-Dalton principle of transfer, and derive the constraints that such principles impose on an additive social welfare function in a general setting and on the optimal growth path in an intertemporal setting.
All Science Journal Classification (ASJC) codes
- Sociology and Political Science
- General Social Sciences
- General Psychology
- Statistics, Probability and Uncertainty
- Inequality aversion
- Principle of transfer