David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Politics, Philosophy and Economics 7 (3):327-340 (2008)
The standard allocative efficiency criteria used by economists (Pareto efficiency and Kaldor-Hicks efficiency) are fundamentally unable to rank a slave-labor system against a free-labor system. Given either set of initial property rights assignments the market can reach (or fail to reach) allocative efficiency (that is, allocate resources to their highest-valued uses), but welfare economics provides no meta-framework for ranking initial assignments. This finding underscores the limits to the usefulness of efficiency criteria: they cannot settle all questions, and unfortunately are least decisive just where the stakes are greatest (namely, where wealth effects of alternative assignments are greatest). Explicitly ethical criteria are needed to make the ranking. Key Words: Pareto efficiency Kaldor-Hicks efficiency property rights welfare economics.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Dominique Lepelley, Patrick Pierron & Fabrice Valognes (2000). Scoring Rules, Condorcet Efficiency and Social Homogeneity. Theory and Decision 49 (2):175-196.
Steven N. Durlauf (2008). Affirmative Action, Meritocracy, and Efficiency. Politics, Philosophy and Economics 7 (2):131-158.
Albino Barrera (2007). Globalization and Economic Ethics: Distributive Justice in the Knowledge Economy. Palgrave Macmillan.
Marty Stuebs & Li Sun (2010). Business Reputation and Labor Efficiency, Productivity, and Cost. Journal of Business Ethics 96 (2):265 - 283.
Allen E. Buchanan (1985). Ethics, Efficiency, and the Market. Rowman & Allanheld.
Russell Hardin (1992). The Morality of Law and Economics. Law and Philosophy 11 (4):331 - 384.
Mark Sagoff (1992). Free‐Market Versus Libertarian Environmentalism. Critical Review 6 (2-3):211-230.
Sven Ove Hansson (2004). Welfare, Justice, and Pareto Efficiency. Ethical Theory and Moral Practice 7 (4):361 - 380.
Added to index2009-01-28
Total downloads11 ( #194,000 of 1,696,463 )
Recent downloads (6 months)1 ( #342,645 of 1,696,463 )
How can I increase my downloads?