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What´s the monetary value of distributive justice

  • Corneo, Giacomo
  • Fong, Christina M.

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.

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Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2007/8.

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Date of creation: 2007
Date of revision:
Handle: RePEc:zbw:fubsbe:20078
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  1. Ernst Fehr & Klaus M. Schmidt, . "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
  2. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
  3. John Roemer, 2003. "To What Extent Do Fiscal Regimes Equalize Opportunities For Income Acquisition Among Citizens," Working Papers 03, University of California, Davis, Department of Economics.
  4. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
  5. Alesina, Alberto F & La Ferrara, Eliana, 2002. "Preferences for Redistribution in the Land of Opportunities," CEPR Discussion Papers 3155, C.E.P.R. Discussion Papers.
  6. Erik Schokkaert, 1998. "Mr. Fairmind is Post-Welfarist: Opinions on Distributive Justice," Center for Economic Studies - Discussion papers ces9809, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  7. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
  8. 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.
  9. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
  10. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  11. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
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