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What's the monetary value of distributive justice

Author

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  • Corneo, Giacomo
  • Fong, Christina M.

Abstract

This paper proposes a model that can be implemented to estimate the willingness to pay for distributive justice. A formula is derived that allows one to recover the willingness to pay for distributive justice from the estimated coefficients of a probit regression and fiscal data. Using this formula and data from a 1998 Gallup Social Audit, we find that the monetary value of justice in the United States is about one fifth of GDP. We find no evidence that the value of justice varies across types of people.
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Suggested Citation

  • Corneo, Giacomo & Fong, Christina M., 2008. "What's the monetary value of distributive justice," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 289-308, February.
  • Handle: RePEc:eee:pubeco:v:92:y:2008:i:1-2:p:289-308
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    References listed on IDEAS

    as
    1. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
    2. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
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    6. Roemer, John E. & Aaberge, Rolf & Colombino, Ugo & Fritzell, Johan & Jenkins, Stephen P. & Lefranc, Arnaud & Marx, Ive & Page, Marianne & Pommer, Evert & Ruiz-Castillo, Javier, 2003. "To what extent do fiscal regimes equalize opportunities for income acquisition among citizens?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 539-565, March.
    7. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    8. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
    9. Erik Schokkaert, 1998. "Mr. Fairmind Is Post-Welfarist: Opinions on Distributive Justice," Public Economics Working Paper Series ces9809, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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