Following Edgeworth Mankiw got it wrong. Short people should be taxed: Edgeworth, Francis Ysidro. 1881. Mathematical Psychics (London: C. K. Paul). 77-8: "Capacity for pleasure is a property of evolution, an essential attribute of civilization. The grace of life, the charm of courtesy and courage, which once at least distinguished rank, rank not unreasonably received the means to enjoy and to transmit. To lower classes was assigned the works of which they seemed most capable; the work of the higher classes being different in kind was not to be equated in severity. If we suppose that capacity for pleasure is an attribute of skill and talent; if we consider that production is an unsymmetrical function of manual and scientific labour; we may see a reason deeper than Economics may afford for the larger pay, though often more agreeable work, of the aristocracy of skill and talent. The aristocracy of sex is similarly grounded upon the supposed superior capacity of the man for happiness."
-- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
