Laissez-faire versus Pareto

Kristof Bosmans and Z. Emel Ozt ̈urk
Authors registered in the RePEc Author Service: Z. Emel Öztürk

Working Papers from Business School - Economics, University of Glasgow

Abstract: Consider two principles for social evaluation. The first, ‘laissez-faire’, says that mean-preserving redistribution away from laissez-faire incomes should be regarded as a social wors- ening. This principle captures a key aspect of liberal political philosophy. The second, weak Pareto, states that an increase in each individual’s disposable income should be regarded as a social improvement. We show that the combination of the two principles implies that total disposable income ought be maxi- mized. Strikingly, the relationship between disposable incomes and laissez-faire incomes must therefore be ignored, leaving little room for liberal values.

Keywords: Laissez-faire; Pareto; Libertarianism; Equal sacrifice taxation; Liberal reward (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2015-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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