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Redistribution and the Efficiency/Justice Trade-Off


  • Petersen, H.-G.


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," Athens University of Economics and Business 92, Athens University of Economics and Business, Department of International and European Economic Studies.
  • Handle: RePEc:fth:athebu:92

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    References listed on IDEAS

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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.

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    JEL classification:

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


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