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Social Choice and Welfare

, Volume 24, Issue 1, pp 33–44 | Cite as

Responsibility and redistribution: The case of first best taxation

  • Bertil Tungodden
Article

Abstract.

It is not straightforward to define the ethics of responsibility in cases where the consequences of changes in factors within our control are partly determined by factors beyond our control. In this paper, we suggest that one plausible view is to keep us responsible for the parts of the consequences that are independent of the factors beyond our control. Within the framework of a first best taxation problem, we present and characterise a redistributive mechanism that both satisfies this interpretation of the ethics of responsibility and the ethics of compensation within a broad class of economic environments. However, on a general basis, even this weaker version of the ethics of responsibility is not compatible with the ethics of compensation, and we report an impossibility result that clarifies the source of this conflict.

Keywords

Economic Theory Economic Environment Broad Class General Basis Weak Version 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag 2005

Authors and Affiliations

  1. 1.Norwegian School of Economics and Business AdministrationBergenNorway

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