Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223577
Authors: 
Berg, Kristoffer
Piacquadio, Paolo Giovanni
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8505
Abstract: 
We propose and axiomatically characterize a family of welfare criteria that prioritize individuals making larger sacrifices. By combining efficiency with a concern for equality of sacrifice, our criteria avoid serious shortcomings of utilitarianism. We illustrate our results within the Mirrleesian optimal taxation framework. Our simulated equal-sacrifice optimal tax schedule for the US has marginal tax rates in line with the US tax system and about 20 percentage points lower than the utilitarian recommendation.
Subjects: 
equal-sacrifice principle
optimal income taxation
welfare criterion
JEL: 
D63
H21
I31
Document Type: 
Working Paper

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