A Note on Efficiency Vs. Distributional Equity in Legal Rulemaking: Should Distributional Equity Matter Given Optimal Income Taxation? |
Common terms and phrases
ability accident losses affect aggregate product assumed based on income change in legal choice of legal denote variables density difficulty in redistributing distribution of income distribution of losses DISTRIBUTIONAL EQUITY MATTER disutility earn income efficient level efficient liability rule effort EQUITY IN LEGAL EQUITY MATTER GIVEN example expected damage expected losses expected utility favorable legal treatment GIVEN OPTIMAL INCOME given simultaneous government project Harvard Hylland and Zeckhauser income equality income tax independent of income individual chooses individual takes individual's expected influence legal outcomes LEGAL RULEMAKING legal rules level of care linear commodity taxation losses plus prevention losses suffered low income MATTER GIVEN OPTIMAL Mirrlees NOTE ON EFFICIENCY optimal income taxation original situation payments point of qualification population distributions prevent accident prevention costs probability distribution problem redistributing income result Risk neutral Steven Shavell strict logic strictly better tax schedule term in brackets variables and functions