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The compensation problem with fresh starts

  • CALO-BLANCO, Aitor

    ()

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

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    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.

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    File URL: http://uclouvain.be/cps/ucl/doc/core/documents/coredp2012_36web.pdf
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    Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2012036.

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    Date of creation: 11 Oct 2012
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    Handle: RePEc:cor:louvco:2012036
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    1. Fleurbaey, Marc & Maniquet, Francois, 1996. "Fair allocation with unequal production skills: The No Envy approach to compensation," Mathematical Social Sciences, Elsevier, vol. 32(1), pages 71-93, August.
    2. Fleurbaey, Marc, 2008. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199215911, May.
    3. Maniquet, Francois, 1998. "An equal right solution to the compensation-responsibility dilemma," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 185-202, March.
    4. FLEURBAEY, Marc & SCHOKKAERT, Erik & DECANCQ, Koen, 2009. "What good is happiness?," CORE Discussion Papers 2009017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Marc Fleurbaey & François Maniquet, 2006. "Fair income tax," Post-Print hal-00246842, HAL.
    6. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(01), pages 25-55, April.
    7. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, june. pag.
    8. Claude D'Aspremont & Louis Gevers, 1977. "Equity and the Informational Basis of Collective Choice," Review of Economic Studies, Oxford University Press, vol. 44(2), pages 199-209.
    9. VALLETTA, Giacomo, 2007. "A fair solution to the compensation problem," CORE Discussion Papers 2007077, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. 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, May.
    11. 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.
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