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Redistribution and the Efficiency/Justice Trade-Off

Author

Listed:
  • Petersen, H.-G.

Abstract

Social justice has become a main objective of economic policy and so often dominates efficiency considerations. In the history of economic thoughts the trade off between efficiency and justice has often been discussed but remained an unsolved problem. In using a simple approach of standard welfare economics the trade-off can be clarified and at least some theoretical arguments found that compulsory income redistribution is usually connected with disincentives and more or less serious efficiency losses.

Suggested Citation

  • Petersen, H.-G., 1998. "Redistribution and the Efficiency/Justice Trade-Off," DEOS Working Papers 0098-03, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:0098-03
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    Cited by:

    1. Tomas Meluzin & Marek Zinecker, 2013. "Trends In Ipos: The Evidence From Financial Markets," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(2), pages 46-63, June.
    2. Iana Okhrimenko, 2021. "The Dichotomy of Procedural and Distributive Justice in the Theory of Social Choice," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 207-226.

    More about this item

    Keywords

    INCOME REDISTRIBUTION ; SOCIAL JUSTICE ; EFFICIENCY;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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