Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/88609 
Year of Publication: 
2013
Series/Report no.: 
University of Tübingen Working Papers in Economics and Finance No. 65
Publisher: 
University of Tübingen, Faculty of Economics and Social Sciences, Tübingen
Abstract: 
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.
Subjects: 
Maximization of social welfare
Rawlsian social welfare function
Utilitarian social welfare function
Deadweight loss
Distaste for low relative income
JEL: 
D31
D60
H21
I38
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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