Optimal redistribution behind the veil of ignorance. Abatemarco, A. & Stroffolini, F. Economia Politica, 40(3):995 – 1024, 2023. Publisher: Springer Science and Business Media Deutschland GmbH Type: Article
Paper doi abstract bibtex We propose a formalization of the Difference Principle (maximin) by which Rawls’ contribution is shown to go beyond distributive value judgments in such a way as to embrace efficiency issues as well. In our model, inequalities are shown to be permitted as far as they stimulate a greater effort in education (or training), and so economic growth. This is the only possibility for an income disparity to be unanimously accepted by both the most-, and above all, the least-advantaged individual. In this vein, we highlight the peculiarity of the Rawlsian equity-efficiency trade off behind the veil of ignorance. Finally, by recalling the old tradition of ‘universal ex-post efficiency’, we identify the set of Rawls-optimal social contracts, which is shown to be a subset of Pareto-optimal ones. © 2023, The Author(s).
@article{abatemarco_optimal_2023,
title = {Optimal redistribution behind the veil of ignorance},
volume = {40},
issn = {11202890},
url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145866125&doi=10.1007%2fs40888-022-00290-8&partnerID=40&md5=eb0945d3a71c6e3d65f7678708e6ee0a},
doi = {10.1007/s40888-022-00290-8},
abstract = {We propose a formalization of the Difference Principle (maximin) by which Rawls’ contribution is shown to go beyond distributive value judgments in such a way as to embrace efficiency issues as well. In our model, inequalities are shown to be permitted as far as they stimulate a greater effort in education (or training), and so economic growth. This is the only possibility for an income disparity to be unanimously accepted by both the most-, and above all, the least-advantaged individual. In this vein, we highlight the peculiarity of the Rawlsian equity-efficiency trade off behind the veil of ignorance. Finally, by recalling the old tradition of ‘universal ex-post efficiency’, we identify the set of Rawls-optimal social contracts, which is shown to be a subset of Pareto-optimal ones. © 2023, The Author(s).},
language = {English},
number = {3},
journal = {Economia Politica},
author = {Abatemarco, Antonio and Stroffolini, Francesca},
year = {2023},
note = {Publisher: Springer Science and Business Media Deutschland GmbH
Type: Article},
pages = {995 -- 1024},
}
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