Substantive versus Procedural Liberalism: Exploring a Dilemma of Contemporary Liberal Thought

Gerhard Wegner

Journal of Institutional and Theoretical Economics (JITE), 2009, vol. 165, issue 3, 535-557

Abstract: Contemporary economic liberalism comes in two forms: a substantive version, which defines the scope and extent of economic policy, and a procedural version, which draws on citizens' preferences. Whereas the recent reconception of economic liberalism based on social-contract theory considers the two versions to be consonant with each other, this paper argues that they differ in ways largely overlooked. It is shown that the dilemma between these two types of liberalism is rooted in an inadequate transfer of the concept of preferences from household to politics. A solution for the dilemma is offered.

JEL-codes: B25 B52 H10 H11 (search for similar items in EconPapers)
Date: 2009
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