Laissez-Faire Versus Pareto

Bosmans, K. and Ozturk, E. (2015) Laissez-Faire Versus Pareto. Working Paper. University of Glasgow, 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 worsening. 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 maximized. Strikingly, the relationship between disposable incomes and laissez-faire incomes must therefore be ignored, leaving little room for liberal values.

• Item Type: Research Reports or Papers (Working Paper)
• Status: Published
• Glasgow Author(s) Enlighten ID: Ozturk, Dr Zeliha Emel
• Authors: Bosmans, K., and Ozturk, E.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Publisher: University of Glasgow
• Copyright Holders: Copyright © 2015 The Authors
• Publisher Policy: Reproduced with permission of Authors