American Economic Review: Vol. 103 No. 1 (February 2013)


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Fairness and Redistribution: Comment

Article Citation

Di Tella, Rafael, and Juan Dubra. 2013. "Fairness and Redistribution: Comment." American Economic Review, 103(1): 549-53.

DOI: 10.1257/aer.103.1.549


We provide an example that shows that in the Alesina and Angeletos (2005) model one can obtain multiplicity even if luck plays no role in the economy. Thus, it is not critical that the noise to signal ratio be increasing in taxes, or that desired taxes are increasing in the noise to signal ratio.

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Di Tella, Rafael (Harvard U)
Dubra, Juan (U Montevideo)

JEL Classifications

D31: Personal Income, Wealth, and Their Distributions
D63: Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H24: Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes

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