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Redistribution and the Efficiency/Justice Trade-Off

Author

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  • 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 92, Athens University of Economics and Business.
  • Handle: RePEc:aue:wpaper:92
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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.

    More about this item

    Keywords

    INCOME REDISTRIBUTION ; SOCIAL JUSTICE ; EFFICIENCY;

    JEL classification:

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

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