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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

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    1. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
    2. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    3. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, pages 960-980.
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    5. 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.
    6. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, pages 897-931.
    7. 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.
    8. Erik Schokkaert, 1998. "Mr. Fairmind Is Post-Welfarist: Opinions on Distributive Justice," Public Economics Working Paper Series ces9809, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    9. 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.
    10. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
    11. Giacomo Corneo, 2001. "Inequality and the State: Comparing US and German Preferences," Annals of Economics and Statistics, GENES, issue 63-64, pages 283-296.
    12. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    13. repec:adr:anecst:y:2001:i:63-64:p:14 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Cubitt, Robin P. & Drouvelis, Michalis & Gächter, Simon & Kabalin, Ruslan, 2011. "Moral judgments in social dilemmas: How bad is free riding?," Journal of Public Economics, Elsevier, pages 253-264.
    2. Gilles le Garrec, 2009. "Feeling guilty and redistributive politics," Documents de Travail de l'OFCE 2009-22, Observatoire Francais des Conjonctures Economiques (OFCE).
    3. Gilles Le Garrec, 2014. "Fairness, socialization and the cultural deman for redistribution," Sciences Po publications 2014-20, Sciences Po.
    4. Gilles Le Garrec, 2011. "Redistribution and the cultural transmission of the taste for fairness," Working Papers hal-01069524, HAL.
    5. M. Fong, Christina & Oberholzer-Gee, Felix, 2011. "Truth in giving: Experimental evidence on the welfare effects of informed giving to the poor," Journal of Public Economics, Elsevier, vol. 95(5), pages 436-444.
    6. Fong, Christina M. & Luttmer, Erzo F. P., 2009. "Do Race and Fairness Matter in Generosity? Evidence from a Nationally Representative Charity Experiment," Working Paper Series rwp09-014, Harvard University, John F. Kennedy School of Government.
    7. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," CESifo Working Paper Series 3534, CESifo Group Munich.
    8. repec:spr:sochwe:v:49:y:2017:i:3:d:10.1007_s00355-016-0996-6 is not listed on IDEAS
    9. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2014. "Comparing inequality aversion across countries when labor supply responses differ," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 845-873.
    10. Gilles Le Garrec, 2011. "Redistribution and the cultural transmission of the taste for fairness," Documents de Travail de l'OFCE 2011-24, Observatoire Francais des Conjonctures Economiques (OFCE).
    11. Kuhn, Andreas, 2009. "In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution," IZA Discussion Papers 4360, Institute for the Study of Labor (IZA).
    12. David Bjerk, 2016. "In front of and behind the veil of ignorance: an analysis of motivations for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 791-824, December.
    13. Grimalday, Gianluca & Karz, Anirban & Proto, Eugenio, 2012. "Everyone Wants a Chance: Initial Positions and Fairness in Ultimatum Games," CAGE Online Working Paper Series 93, Competitive Advantage in the Global Economy (CAGE).
    14. Giacomo Corneo, 2011. "GINI DP 17: Income Inequality, Value Systems and Macroeconomic Performance," GINI Discussion Papers 17, AIAS, Amsterdam Institute for Advanced Labour Studies.
    15. Aronsson, Thomas & Johansson-Stenman, Olof, 2011. "Animal Welfare and Social Decisions," Working Papers in Economics 485, University of Gothenburg, Department of Economics.
    16. Gilles Le Garrec, 2014. "Fairness, socialization and the cultural deman for redistribution," Documents de Travail de l'OFCE 2014-20, Observatoire Francais des Conjonctures Economiques (OFCE).
    17. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09iak4384sp is not listed on IDEAS
    18. Le Garrec, Gilles, 2013. "Guilt aversion and redistributive politics: A moral intuitionist approach," Economics Discussion Papers 2013-53, Kiel Institute for the World Economy (IfW).
    19. Fong, Christina M. & Luttmer, Erzo F.P., 2011. "Do fairness and race matter in generosity? Evidence from a nationally representative charity experiment," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 372-394, June.
    20. James Konow, 2009. "Is fairness in the eye of the beholder? An impartial spectator analysis of justice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(1), pages 101-127, June.
    21. Hong, Hao & Ding, Jianfeng & Yao, Yang, 2015. "Individual social welfare preferences: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 89-97.
    22. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09hacc56d41 is not listed on IDEAS
    23. repec:eee:pubeco:v:155:y:2017:i:c:p:1-10 is not listed on IDEAS
    24. Gilles Le Garrec, 2009. "Feeling guilty and redistributive politics," Working Papers hal-01066215, HAL.

    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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