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Theoretical Issues in Size Income Distribution Policy

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Incomes Policies

Part of the book series: International Economic Association Series ((IEA))

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Abstract

In this paper we discuss some of the pressing problems in the theory of size income distribution policy. We consider the following problems:

  • The definition of the income unit for purposes of income distribution policy.

  • The relevance of individual labour-leisure choices for income distribution policy.

  • The trade-off between equity and efficiency and the implications.

  • The treatment of tertiary income in income distribution policy.

Many recent contributions to the theory of size income distribution start with the remark that a coherent theory of income distribution is lacking. Since these contributions all aim to improve on the situation, it is at least amusing to note that this remark is about the only constant in the various attempts. This bodes ill for income distribution policy. As long as there are controversies as deep as in income distribution theory, it will be impossible to formulate policy recommendations that obtain unanimous support from the economics professions. Economists’ continuous attempts to disentangle positive analysis and normative judgements are most visible in this area.

We acknowledge gratefully the comments by Evert van Imhoff and Dirk J. Wolfson on an earlier version of this paper.

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Author information

Authors and Affiliations

  1. University of Amsterdam, Netherlands

    Joop Hartog

  2. Erasmus University, Rotterdam, Netherlands

    Jozef M. M. Ritzen

Authors
  1. Joop Hartog
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  2. Jozef M. M. Ritzen
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Editor information

Editors and Affiliations

  1. El Colegio de México, Mexico, DF, Mexico

    Victor L. Urquidi (Honorary President) (Honorary President)

  2. IEA, France

    Victor L. Urquidi (Honorary President) (Honorary President)

Copyright information

© 1989 International Economic Association

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Cite this chapter

Hartog, J., Ritzen, J.M.M. (1989). Theoretical Issues in Size Income Distribution Policy. In: Urquidi, V.L. (eds) Incomes Policies. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20381-9_1

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