Reversal of Misfortune When Providing for Adversity
Martin C. McGuire and Gary S. Becker
,
6
(
17
)
Defence and Peace Economics
619-643
December
2006
Abstract
Often an economic agent dissatisfied with an endowed distribution of utilities desires to optimize this distribution by transferring income or resources across individuals or states of the world. This multi‐state optimization theme recurs in a wide variety of economic contexts, ranging across taxation and income distribution, international trade and market disruption, labor contracts and unemployment insurance, Rawlsian design of social contracts, provision for retirement, and many others.