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What´s the monetary value of distributive justice

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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, defined as distribution according to desert. We derive a formula that allows one to recover the willingness to pay for distributive justice from fiscal data and the estimated coefficients of a probit regression. Using this formula and data from a 1998 Gallup Social Audit, we find that on average the monetary value of justice for US households amounts to about one fifth of their disposable income. Moreover, we find evidence of markedly heterogeneous preferences for justice along the lines of race and education.

Suggested Citation

  • Corneo, Giacomo & Fong, Christina M., 2007. "What´s the monetary value of distributive justice," Discussion Papers 2007/8, Free University Berlin, School of Business & Economics.
  • Handle: RePEc:zbw:fubsbe:20078
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    References listed on IDEAS

    as
    1. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    2. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
    3. 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.
    4. 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.
    5. Giacomo Corneo, 2001. "Inequality and the State: Comparing US and German Preferences," Annals of Economics and Statistics, GENES, issue 63-64, pages 283-296.
    6. 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.
    7. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
    8. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    9. Erik Schokkaert, 1998. "Mr. Fairmind is Post-Welfarist: Opinions on Distributive Justice," Working Papers Department of Economics ces9809, KU Leuven, Faculty of Economics and Business, Department of Economics.
    10. repec:adr:anecst:y:2001:i:63-64 is not listed on IDEAS
    11. Lester C. Thurow, 1971. "The Income Distribution as a Pure Public Good," The Quarterly Journal of Economics, Oxford University Press, vol. 85(2), pages 327-336.
    12. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
    13. repec:adr:anecst:y:2001:i:63-64:p:14 is not listed on IDEAS
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    More about this item

    Keywords

    Distributive Justice; Governmental Redistribution; Fairness;

    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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