Abstract
The present paper considers rationing problems interpreted as, e.g., bankruptcy problems or taxation problems. We demonstrate that among continuous and order-preserving rationing methods, the proportional method is the only rationing method that preserves inequality in both gains and losses.
Original language | English |
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Journal | Economics Letters |
Volume | 87 |
Issue number | 3 |
Pages (from-to) | 355–360 |
ISSN | 0165-1765 |
DOIs | |
Publication status | Published - 2005 |
Externally published | Yes |
Keywords
- Rationing
- Inequality preservation
- Taxation
- Manipulation
- Proportional method