Laissez-faire versus Pareto

Bosmans, K. and Öztürk, Z. E. (2022) Laissez-faire versus Pareto. Social Choice and Welfare, 58(4), pp. 741-751. (doi: 10.1007/s00355-021-01373-4)

Abstract

AbstractConsider 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 libertarian political philosophy. The second, weak Pareto, states that an increase in the disposable income of each individual should be regarded as a social improvement. We show that the combination of the two principles implies that total disposable income ought to be maximized. Strikingly, the relationship between disposable incomes and laissez-faire incomes must therefore be ignored, leaving little room for libertarian values.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Ozturk, Dr Zeliha Emel
• Authors: Bosmans, K., and Öztürk, Z. E.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Social Choice and Welfare
• Publisher: Springer
• ISSN: 0176-1714
• ISSN (Online): 1432-217X
• Published Online: 08 November 2021
• Copyright Holders: Copyright © 2021 The Authors
• First Published: First published in Social Choice and Welfare 58(4): 741-751
• Publisher Policy: Reproduced under a Creative Commons License