Measuring Attitudes Towards Inequality-Amiel

This note last modified November 19, 2024

#notesFromPaper Year : Tags : Authors: Amiel Creedy Hurn

They use a “leaky bucket” exercise.

Person R is 10x wealthier than person P. A tax takes $1,000 from person R. Some of that tax is given to person P, while the rest is lost in administrative fees. What amount needs to make it to person P for the transaction to be worthwhile? This and variations are used to measure feelings towards wealth inequality.