공평성과 효율성을 고려한 소득재분배 정책

Equity versus efficiency in an income redistribution policy

It is commonly asserted that there is a trade-off between equity and efficiency. Even if the debates on distributional issues are often confused by a failure properly to distinguish between equity and equality, this papers used s equity instead of an equality. In this study, allocation is equitable if and only if each person in the society prefers his consumption bundle to the consumption bundle of every other person. This paper begins the simplest case when an already existing quantity of goods has to be distributed. In this case, an income equality modified by Pareto optimality is found. Introducing the superfainess and the fairness curve, an inequal distribution is fair in economic ideologies. When a redistribution policy affects a labor input and a production negatively, a taxation leads to a loss in macroeconomic efficiency. As the redistribution policy takes place by levying a proportional tax on the higher wage(the rich) and using the proceeds as a transfer payment to the lower wage(the poor), the loss of efficiency can be taken as an argument against the redistribution policy. If the government takes a redistribution policy, the efficiency must be considered.