AD series Working Papers
WP-AD 2012-18
Fair bound based solidarity
José M. Jiménez Gómez and Josep Enric Peris Ferrando
Abstract
How should scholarships be distributed among the (public) higher education students? We raise this situation as a redistribution problem. Following the approach developed in Fleurbaey (1994) and Bossert (1995), redistribution should be based on the notion of solidarity and it re-allocates resources taking into account only agents' relevant characteristics. We also follow Luttens (2010a), who considers that compensation of relevant characteristics must be based on a lower bound on what every individual deserves. In doing so, we use the so-called fair bound (Moulin 2002) to define anegalitarian redistribution mechanism and characterize it in terms of non-negativity, priority in lower bound and solidarity. Finally, we apply our approach to the scholarships redistribution problem.
Keywords: Redistribution mechanism, Lower bounds, Scholarship, Solidarity.
JEL classification: C71, D63, D71.