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The compensation problem with fresh starts

Author

Listed:
  • CALO-BLANCO, Aitor

    (University of Coruna, Spain & Université catholique de Louvain, CORE, Belgium)

Abstract

Forgiveness is an ethical ideal that advocates that a fresh start should be conferred on those individuals who regret their past choices. Grounded on such a principle, Fleurbaey (2005) proposes the use of the equivalent endowment as the proper measure of the welfare loss experienced by those who have mismanaged their initial resources. In this paper we provide the forgiveness framework with an ethical foundation that allows us to formally deal with the compensation problem. We obtain that different solutions to the ideal of forgiveness can arise according to the distributional requirements that society wants to satisfy.

Suggested Citation

  • CALO-BLANCO, Aitor, 2012. "The compensation problem with fresh starts," LIDAM Discussion Papers CORE 2012036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2012036
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    References listed on IDEAS

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    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, January.
    2. Marc Fleurbaey & François Maniquet, 2006. "Fair Income Tax," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(1), pages 55-83.
    3. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203.
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    5. FLEURBAEY, Marc & SCHOKKAERT, Erik & DECANCQ, Koen, 2009. "What good is happiness?," LIDAM Discussion Papers CORE 2009017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Serge-Christophe Kolm, 1996. "The theory of justice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 151-182, April.
    7. Claude D'Aspremont & Louis Gevers, 1977. "Equity and the Informational Basis of Collective Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(2), pages 199-209.
    8. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    9. Maniquet, Francois, 1998. "An equal right solution to the compensation-responsibility dilemma," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 185-202, March.
    10. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(1), pages 25-55, April.
    11. Giacomo Valletta, 2009. "A fair solution to the compensation problem," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(3), pages 455-478, March.
    12. Gaertner,Wulf & Schokkaert,Erik, 2011. "Empirical Social Choice," Cambridge Books, Cambridge University Press, number 9781107013940, January.
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    Cited by:

    1. Jacques Dreze, 2016. "Existence and multiplicity of temporary equilibria under nominal price rigidities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(1), pages 279-298, June.
    2. ROELS, Guillaume & CHEVALIER, Philippe & WEI, Ying, 2012. "United we stand? Coordinating capacity investment and allocation in joint ventures," LIDAM Discussion Papers CORE 2012045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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    More about this item

    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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