Article
A Scandinavian Consensus Solution for Efficient Income Distribution Among Nonmalevolent Consumers
Journal of Economic Theory
(1970)
Abstract
If Persons A and B are both benevolent to C, then a gift from A to C also benefits B. Thus C's income is like a public good to A and B. What happens with lots of people whose affections are entangled? This paper shows that a "distributional Lindahl equilibrium" exists and leads to an efficient income redistribution.
Keywords
- benevolence,
- Lindahl equilibrium,
- gifts,
- nonmalevolence,
- income redistribution,
- Pareto optimality
Disciplines
Publication Date
December, 1970
Citation Information
Ted Bergstrom. "A Scandinavian Consensus Solution for Efficient Income Distribution Among Nonmalevolent Consumers" Journal of Economic Theory Vol. 2 Iss. 4 (1970) Available at: http://works.bepress.com/ted_bergstrom/85/