The problem of dividing a budget among several districts

Título: The  problem of dividing a budget among several districts

Ponente: Ricardo Martínez (Universidad de Granada)

Fecha: Lunes 4 de junio de 2018 a las 12:30 horas

Lugar: Sala de Seminarios, Instituto Universitario de Investigación CIO, Edificio Torretamarit, Universidad Miguel Hernández (Campus de Elche)

Resumen:

We study the problem of dividing a budget among the districts of a city taking into account their population and wealth. We focus on order preservation properties that ensure higher transfers to those districts with larger populations and, at the same time, introduce a policy redistribution so that districts with lower wealth per capita obtain higher transfers per capita. We determine the allocation methods that fulfills both requirements. We also study requirements on the stability and manipulability of the allocation. We find out that the proportional rule is the unique allocation method that meets the previous requirements. This proportional rule obviates the wealth component of the problem; however is reduces the inequality in the wealth per capita.