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Responsibility, talent, and compensation: A second-best analysis

Author

Listed:
  • Dirk Van de gaer

    (Department of Economics, NUI-University of Maynooth, Maynooth, Co. Kildare, Ireland)

  • Marc Fleurbaey

    (THEMA, Université de Cergy-Pontoise, 33 Bd du Port, F-95011 Cergy-Pontoise Cedex, France)

  • Walter Bossert

    (Department of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, UK)

Abstract
This paper examines how the first-best models of compensation based on the agents' talents and responsibilities analyzed in some recent contributions can be extended to a second-best context. A few social criteria are proposed and compared to alternative approaches by Roemer and Van de gaer.

Suggested Citation

  • Dirk Van de gaer & Marc Fleurbaey & Walter Bossert, 1999. "Responsibility, talent, and compensation: A second-best analysis," Review of Economic Design, Springer;Society for Economic Design, vol. 4(1), pages 35-55.
    • Handle: RePEc:spr:reecde:v:4:y:1999:i:1:p:35-55
    Note: Received: 5 March 1997 / Accepted: 19 August 1998
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    More about this item

    Keywords

    Compensation; optimal tax; second-best; opportunities;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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