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Aggregate consumption must be the same in the no-tax and the tax economy, because agents are given the same endowments, and pre-tax payoffs are the same.
If low educated employees had the same endowments, that is if they had the same composition of background conditions (gender, age, type of jobs, etc).
However, these large losses follow more than a decade during which many of the same endowments enjoyed compound annual gains of 15% to 18%–even, in recent years, gains of more than 25% annually.
The size of the endowment losses in elite universities this year, both in percentage and dollar terms, has created some astonishment and shock that, in light of the gains these same endowments enjoyed over the past decade, is itself rather astonishing.
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A reasonable goal would be to allow the ESM to issue approximately 3 trillion medium-term "eurobonds" on the markets, starting with the same endowment capital – in other words, the kind of sum that can take on the current and potential challenges generated by the debt crisis.
In the private sector, at the same time endowments have declined students need more help than ever".
If any two people in society have the same native talent endowment and the same ambition, they have the same prospects for competitive success, and their family of origin incomes will also be the same.
Another possible mechanism is that ambition formation tracks family of origin income position (via some process that does not itself violate FEO), so that no persons with the same native talent endowment and different family of origin incomes have the same ambition, so their having different prospects of competitive success does not violate FEO.
The authors argue that twins have the same genetic endowment and (usually) the same upbringing.
Thus, each group receives different returns for the same level of endowments.
At the same time, the endowments of these schools continue to grow due to gifts and successful investments.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com