Abstract
The second theorem of welfare economics is generalized so that ethical redistribution of wealth can be carried out by the centre by means of an adjustment rule that depends only on prices and an exogenously given feasible allocation x. When equilibrium is achieved each household i will have at least as much utility as it would derive from its component of x.
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References
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Mike Peters and a referee of this journal provided useful expositional comments. I am grateful for their help and to the Social Sciences and Humanities Research Council (Canada) for financial support. Any defects in the paper can be attributed to the author.
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Campbell, D.E. Redistribution of wealth when knowledge is dispersed. Soc Choice Welfare 5, 281–286 (1988). https://doi.org/10.1007/BF00433656
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DOI: https://doi.org/10.1007/BF00433656