Horizontal Equity

Abstract

The principle of horizontal equity (HE) is considered as a basic principle to follow in order to design and evaluate a redistributive policy. However, the theoretical debate has not yet clarified what exactly horizontal equity is. In this paper we aim to clarify the meaning of the principle of HE and its normative content. In particular, we establish the true status of the two fundaments of the principle of HE, de. ning what is meant by `equals' and then treating these `equals' `equally'. Our analysis brings forth a new and more appropriate definition of the principle of HE.