Inequality Preserving Rationing

Jens Leth Hougaard, Lars Peter Østerdal

Research output: Contribution to journalJournal articleResearchpeer-review

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 languageEnglish
JournalEconomics Letters
Volume87
Issue number3
Pages (from-to)355–360
ISSN0165-1765
DOIs
Publication statusPublished - 2005
Externally publishedYes

Keywords

  • Rationing
  • Inequality preservation
  • Taxation
  • Manipulation
  • Proportional method

Cite this