Redistribution by Means of Lotteries
Résumé
A government designs transfers to agents in the absence of information on their preferences. The second-best allocation is equal sharing among citizens when the awards are deterministic. We provide a necessary and sufficient condition under which lotteries improve upon the egalitarian outcome. The condition requires that the citizens with large social weights have low risk aversion, and that the left tail of the distribution of risk aversion be sufficiently dispersed.
Origine : Fichiers produits par l'(les) auteur(s)
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