A narrowly person-affecting (NPA) axiology is an account of the moral ranking of outcomes such that the comparison of any two outcomes depends on the magnitude and weight of individuals’ well-being gains and losses between the two. This article systematically explores NPA axiology. It argues that NPA axiology yields an outcome ranking that satisfies three fundamental axioms: Pareto, Anonymity and, plausibly, Pigou-Dalton. The axiology is neutral to non-well-being considerations (desert); and (assuming well-being measurability) leads to the Repugnant Conclusion (RC). In (...) short, NPA axiology provides a grounding for Paretian, equity-regarding welfarism, albeit one that includes the RC. (shrink)

Non-Archimedean population axiologies – also known as lexical views – claim (i) that a sufficient number of lives at a very high positive welfare level would be better than any number of lives at a very low positive welfare level and/or (ii) that a sufficient number of lives at a very low negative welfare level would be worse than any number of lives at a very high negative welfare level. Such axiologies are popular because they can avoid the (Negative) Repugnant (...) Conclusion and satisfy the adequacy conditions given in the central impossibility result in population axiology due to Gustaf Arrhenius. I provide a novel argument against them which appeals to the way that good and bad lives can intuitively outweigh one another. (shrink)

A response to pressures on pension finance caused by population ageing and economic turbulence has been a substantial move from traditional defined-benefit plans in which, at least in principle, all risk falls on the contributions side, to defined-contribution plans in which risk during accumulation all falls on the benefits side. This paper argues that both designs are ‘corner solutions’ and hence generally suboptimal, and goes on to set out a range of designs that offer different ways of sharing risk among (...) workers, employers, future pensioners and current pensioners. (shrink)

According to relational egalitarianism, justice requires equal relations. In this paper, I ask the question: can equal relations be unjust according to relational egalitarianism? I argue that while on some conceptions of relational egalitarianism, equal relations cannot be unjust, there are conceptions in which equal relations can be unjust. Surprisingly, whether equal relations can be unjust cuts across the distinction between responsibility-sensitive and non-responsibility-sensitive conceptions of relational egalitarianism. I then show what follows if one accepts a conception in which equal (...) relations can be unjust, including why it provides a reason to grant some people less political power than others. (shrink)

Friedrich von Hayek’s classical liberalism argued that free markets allow individuals the greatest opportunity to achieve their ends. This paper develops an internal critique of this claim. It argues that once externalities are introduced, the forms of economic knowledge Hayek thought to undermine government action and orthodox utilitarianism also rule out relative welfarist assessments of more or less regulated markets. Given the pervasiveness of externalities in modern economies, Hayek will frequently be unable to make comparative welfarist claims, or he must (...) relax his epistemic assumptions and allow for greater government action than his classical liberalism would wish to accept. (shrink)

Insurers draw on sophisticated models for the probability distributions over losses associated with catastrophic events that are required to price insurance policies. But prevailing pricing methods don’t factor in the ambiguity around model-based projections that derive from the relative paucity of data about extreme events. I argue however that most current theories of decision making under ambiguity only partially support a solution to the challenge that insurance decision makers face and propose an alternative approach that allows for decision making that (...) is responsive to both the evidential situation of the insurance decision maker and their attitude to ambiguity. (shrink)

This paper is a contribution to a symposium on Michael Otsuka’s book, How to Pool Risk Across Generations. Following Otsuka, one may distinguish three distinct systems of cooperation within a standard pension arrangement: the retirement system, the longevity risk pool and the investment risk pool. It is important to observe, however, that only the retirement system constitutes a genuine system of intergenerational cooperation, the other two are essentially intragenerational, in that they pool risks among members of a cohort. Otsuka is (...) faulted for being occasionally less than clear on these distinctions. (shrink)

Michael Otsuka argues that collective pension schemes are forms of social cooperation on equal terms for mutual advantage and thus, matters of social justice. In this way Otsuka wants to understand collectively funded pensions in Rawlsian terms. I argue that not all forms of social cooperation are the same and that the specific kind of social cooperation Rawls has in mind is, in at least three central respects, different from the kind of social cooperation involved in the collective pension schemes (...) Otsuka describes. (shrink)

What follows is a sketch of three of the main claims of How to Pool Risks across Generations: The Case for Collective Pensions (Otsuka 2023) with which my symposium commentators critically engage: namely, that (1) by efficiently pooling risks across as well as within generations, (2) collective pensions can realize a form of Rawlsian reciprocity involving fair terms of cooperation for mutual advantage, (3) through the voluntary binding agreements of individuals to join a mutual association that provides social insurance. I (...) respond to their challenges to these claims in my replies that follow their contributions. (shrink)

This paper introduces a theory of ownership that is rooted in Israel Kirzner’s theory of entrepreneurship – The Entrepreneurial Theory of Ownership. Its central idea is that natural resources are not available to us automatically as other approaches to justice implicitly assume. Before we can use a resource, we need to do preparatory work in the form of making an entrepreneurial judgement on it. This fact, as I argue, makes it possible to put private ownership as a natural right on (...) a firm normative ground and answer many traditional challenges to private property. (shrink)

I agree that a good pensions system should embody some form of collective risk pooling and that this would be to the advantage of everyone. There are some difficult issues of adverse selection to be solved, however. Moreover, egalitarian concerns are of crucial importance in most countries and they require to go further than collective risk pooling and to take into account that society is more than a system of self-interested monetary transfers between and within cohorts.

This paper is about time preferences, the phenomenon that the very same things are usually considered the less valuable the farther in the future they are obtained. The utilities of those things are discounted at a certain rate. The paper presents a novel normative argument for exponential discount rates, whatever their empirical adequacy. It proposes to take indexical utility seriously, i.e. utilities referring to indexical propositions (that speak of ‘I’, ‘now’, etc.) as opposed to non-indexical propositions. Economic focus is only (...) on the latter, while the former are neglected. The potential ignorance of when is now generates a difference between indexical and non-indexical utility that can be exploited for a novel argument in favour of exponential discount rates. (shrink)

This contribution discusses the central thesis in Michael Otsuka’s book that collective pensions can be organized on a voluntary basis from the recent experience with pension reform in the Netherlands. Despite a long tradition of collective-funded pensions organized in a decentralized way by social partners, basis reform was necessary as population ageing made it increasingly harder to maintain the intergenerational solidarity implicit in these pensions. Although it is well-established that risk sharing between generations can be beneficial and welfare improving to (...) all, it is far from certain that new generations will enter existing pension arrangements on a voluntary basis. First, there is a considerable ‘discontinuity risk’ if deficits in pension funding – caused by bad shocks – deter younger generations from entering the scheme. Second, even if it is to their own interest most people do not voluntarily engage in pension schemes due to several kinds of behavioural and psychological barriers. (shrink)

When reading contemporary theories of distributive justice, one could easily get the impression that questions of fiscal design are normatively speaking merely instrumental for realizing the distributive ideal. Once the overall conception of justice is settled upon, questions of how the state should arrange its institutions and policies are settled if they effectively and efficiently promote the preferred distribution. I argue that such pure instrumentalism is mistaken in the context of fiscal policy. As a result, there is nothing problematic or (...) morally arbitrary about accepting domain-specific principles of fiscal justice. (shrink)