Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224660
Authors: 
Stark, Oded
Year of Publication: 
2020
Series/Report no.: 
University of Tübingen Working Papers in Business and Economics 137
Abstract: 
We show that a social planner who seeks to allocate a given sum in order to reduce efficiently the social stress of a population, as measured by the aggregate relative deprivation of the population, pursues a disbursement procedure that is identical to the procedure adhered to by a Rawlsian social planner who seeks to allocate the same sum in order to maximize the Rawlsian maximin-based social welfare function. Thus, the constrained minimization of aggregate relative deprivation constitutes an economics-based rationale for the philosophy-based constrained maximization of the Rawlsian social welfare function.
Subjects: 
Rawlsian social welfare function
Aggregate relative deprivation (ARD)
Social stress
An algorithm of cost-effective policy response to ARD
Congruence of the algorithm with the Rawlsian social welfare program
JEL: 
A13
D04
D63
H53
P51
Document Type: 
Working Paper

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