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Proportional Rule (bankruptcy)
The proportional rule is a division rule for solving bankruptcy problems. According to this rule, each claimant should receive an amount proportional to their claim. In the context of taxation, it corresponds to a proportional tax. Formal definition There is a certain amount of money to divide, denoted by ''E'' (=Estate or Endowment). There are ''n'' ''claimants''. Each claimant ''i'' has a ''claim'' denoted by ''c_i''. Usually, \sum_^n c_i > E, that is, the estate is insufficient to satisfy all the claims. The proportional rule says that each claimant ''i'' should receive r \cdot c_i, where ''r'' is a constant chosen such that \sum_^n r\cdot c_i = E. In other words, each agent gets \frac\cdot E. Examples Examples with two claimants: * PROP(60,90; 100) = (40,60). That is: if the estate is worth 100 and the claims are 60 and 90, then r = 2/3, so the first claimant gets 40 and the second claimant gets 60. * PROP(50,100; 100) = (33.333,66.667), and similarly PROP(40,80; 100) = ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy Problem
A bankruptcy problem, also called a claims problem, is a problem of distributing a homogeneous divisible good (such as money) among people with different claims. The focus is on the case where the amount is insufficient to satisfy all the claims. The canonical application is a bankrupt firm that is to be liquidated. The firm owes different amounts of money to different creditors, but the total worth of the company's assets is smaller than its total debt. The problem is how to divide the scarce existing money among the creditors. Another application would be the division of an estate amongst several heirs, particularly when the estate cannot meet all the deceased's commitments. A third application is ''tax assessment''. One can consider the claimants as taxpayers, the claims as the incomes, and the endowment as the total after-tax income. Determining the allocation of total after-tax income is equivalent to determining the allocation of tax payments. Definitions The amount ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportional Tax
A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases. The amount of the tax is in proportion to the amount subject to taxation. "Proportional" describes a distribution effect on income or expenditure, referring to the way the rate remains consistent (does not progress from "low to high" or "high to low" as income or consumption changes), where the marginal tax rate is equal to the average tax rate.Hyman, David M. (1990) ''Public Finance: A Contemporary Application of Theory to Policy'', 3rd, Dryden Press: Chicago, ILJames, Simon (1998) ''A Dictionary of Taxation'', Edgar Elgar Publishing Limited: Northampton, MA It can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. Proportional taxes maintain equal tax incidence regardless of the ability-to-pay and do not shift the incidence disproportionately to those with a higher or lower economic well-being. Flat tax ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Claim In Bankruptcy
A Proof of claim in bankruptcy, in United States bankruptcy law, is a document filed with the Court so as to register a claim against the assets of the bankruptcy estate. The claim sets out the amount that is owed to the creditor as of the date of the bankruptcy filing and, if relevant, any priority status. Although a document called a Claim in Bankruptcy is used in proceedings in both Canada and the United States, in the United States, the document is properly termed a Proof of Claim. The form is different although they share many similar aspects. Upon receipt of a claim, the Trustee in bankruptcy must notify the claimant (or creditor) whether the estate will object to the claim or whether it will, as is the default case, allow the claim. Some of the reasons a creditor's claim may be objected to are that: * the claim is not liquidated, such as a claim for damages for pain and suffering that is not the result of a judgment debt. This assertion is not fatal as the claim may be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Characterization (mathematics)
In mathematics, a characterization of an object is a set of conditions that, while different from the definition of the object, is logically equivalent to it. To say that "Property ''P'' characterizes object ''X''" is to say that not only does ''X'' have property ''P'', but that ''X'' is the ''only'' thing that has property ''P'' (i.e., ''P'' is a defining property of ''X''). Similarly, a set of properties ''P'' is said to characterize ''X'', when these properties distinguish ''X'' from all other objects. Even though a characterization identifies an object in a unique way, several characterizations can exist for a single object. Common mathematical expressions for a characterization of ''X'' in terms of ''P'' include "''P'' is necessary and sufficient for ''X''", and "''X'' holds if and only if ''P''". It is also common to find statements such as "Property ''Q'' characterizes ''Y'' up to isomorphism". The first type of statement says in different words that the extension of ''P'' is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportional Division
A proportional division is a kind of fair division in which a resource is divided among ''n'' partners with subjective valuations, giving each partner at least 1/''n'' of the resource by his/her own subjective valuation. Proportionality was the first fairness criterion studied in the literature; hence it is sometimes called "simple fair division". It was first conceived by Steinhaus. Example Consider a land asset that has to be divided among 3 heirs: Alice and Bob who think that it's worth 3 million dollars, and George who thinks that it's worth $4.5M. In a proportional division, Alice receives a land-plot that she believes to be worth at least $1M, Bob receives a land-plot that ''he'' believes to be worth at least $1M (even though Alice may think it is worth less), and George receives a land-plot that he believes to be worth at least $1.5M. Existence A proportional division does not always exist. For example, if the resource contains several indivisible items and the number ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportional Representation
Proportional representation (PR) refers to a type of electoral system under which subgroups of an electorate are reflected proportionately in the elected body. The concept applies mainly to geographical (e.g. states, regions) and political divisions (political parties) of the electorate. The essence of such systems is that all votes cast - or almost all votes cast - contribute to the result and are actually used to help elect someone—not just a plurality, or a bare majority—and that the system produces mixed, balanced representation reflecting how votes are cast. "Proportional" electoral systems mean proportional to ''vote share'' and ''not'' proportional to population size. For example, the US House of Representatives has 435 districts which are drawn so roughly equal or "proportional" numbers of people live within each district, yet members of the House are elected in first-past-the-post elections: first-past-the-post is ''not'' proportional by vote share. The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
