A concern about low relative income, and the alignment of utilitarianism with egalitarianism

A utilitarian social planner who maximizes social welfare assigns the available income to those who are most efficient in converting income into utility. However, when individuals are concerned about their income falling behind the incomes of others, the optimal income distribution under utilitarianism is equality of incomes.


Issue Date:
2011-10
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/117257
Total Pages:
10
JEL Codes:
H0; I0; I30; I31
Series Statement:
ZEF- Discussion Papers on Development Policy
No. 156




 Record created 2017-04-01, last modified 2017-04-04

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