Pareto Optimal Redistribution: Comment

Abstract

occurs in the context of the HochmanRodgers scheme is a function of a) people's rate of substitution between the satisfaction derived from retaining income and that derived from giving it, and b) the distribution of earnings which exists before giving occurs. Whatever the values of a), the outcome will differ depending on b). Such, at least, will be the case unless everybody's rate of substitution is such that complete equality results. Pareto optimal redistribution thus constitutes a secondary redistribution which depends on the initial distribu