Template-Type: ReDIF-Paper 1.0
Author-Name:  Jens Leth Hougaard
Author-Name-First: Jens Leth
Author-Name-Last: Hougaard
Author-Email: jlh@foi.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name:  Juan D. Moreno-Ternero
Author-Name-First: Juan D.
Author-Name-Last: Moreno-Ternero
Author-Workplace-Name: Department of Economics, Universidad de Malaga and Pablo de Olavide
Author-Name:  Lars Peter Østerdal
Author-Name-First:  Lars Peter 
Author-Name-Last: Østerdal
Author-Workplace-Name: Department of Economics, University of Copenhagen
Title:  Baseline Rationing
Abstract: The standard problem of adjudicating conflicting claims describes a situation in which a given amount of a divisible good has to be allocated among agents who hold claims against it exceeding the available amount. This paper considers more general rationing problems in which, in addition to claims, there exist baselines (to be interpreted as objective entitlements, ideal targets, or past consumption) that might play an important role in the allocation process. The model we present is able to accommodate real-life rationing situations, ranging from resource allocation in the public health care sector to international protocols for the reduction of greenhouse emissions, or water distribution in drought periods. We define a family of allocation methods for such general rationing problems - called baseline rationing rules - and provide an axiomatic characterization for it. Any baseline rationing rule within the family is associated with a standard rule and we show that if the latter obeys some properties reflecting principles of impartiality, priority and solidarity, the former obeys them too.
Length: 20 pages
Creation-Date:  2010-06
File-URL: http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2010/MSAP_WP05_2010.pdf
File-Format: Application/pdf
Number: 05_2010
Classification-JEL: D63
Keywords: rationing, baselines, claims, priority, solidarity
Handle: RePEc:foi:msapwp:05_2010