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Fairness versus Welfare: Notes on the Pareto Principle, Preferences, and Distributive Justice

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Author Info
Louis Kaplow
Steven Shavell

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Abstract

Fairness versus Welfare, we advance the thesis that social policies should be assessed entirely on the basis of their effects on individuals’ well-being. This thesis implies that no independent weight should be accorded to notions of fairness (other than many purely distributive notions). We support our thesis in three ways: by demonstrating how notions of fairness perversely reduce welfare, indeed, sometimes everyone’s well-being; by revealing numerous other deficiencies in the notions, including their lack of sound rationales; and by providing an account of notions of fairness that explains their intuitive appeal in a manner that reinforces the conclusion that they should not be treated as independent principles in policy assessment. In this essay, we discuss these three themes and comment on issues raised by Richard Craswell, Lewis Kornhauser, and Jeremy Waldron.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?id=doi:10.1086/345679
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Article provided by University of Chicago Press in its journal The Journal of Legal Studies.

Volume (Year): 32 (2003)
Issue (Month): ()
Pages: 331-362
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Handle: RePEc:ucp:jlstud:v:32:y:2003:p:331-362

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Louis Kaplow & Steven Shavell, 2001. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 281-286, April. [Downloadable!] (restricted)
  2. Kaplow, Louis & Shavell, Steven, 1999. "The Conflict between Notions of Fairness and the Pareto Principle," American Law and Economics Review, Oxford University Press, vol. 1(1-2), pages 63-77, Fall.
  3. Kaplow, Louis & Shavell, Steven, 1994. "Why the Legal System Is Less Efficient Than the Income Tax in Redistributing Income," Journal of Legal Studies, University of Chicago Press, vol. 23(2), pages 667-81, June.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Luiz Freitas & Jeffrey Wagner, 2007. "Capturing moral economic context," Economics Bulletin, Economics Bulletin, vol. 4(14), pages 1-10. [Downloadable!]
  2. Mark White, 2004. "Preaching to the choir: a response to Kaplow and Shavell's Fairness Versus Welfare," Review of Political Economy, Taylor and Francis Journals, vol. 16(4), pages 507-515, October. [Downloadable!] (restricted)
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