How valuable is the market mechanism for practical morality? What is its moral standing? We can scarcely doubt that as individuals we do value tremendously the opportunity of using markets. Indeed, without access to markets most of us would perish, since we don't typically produce the things that we need to survive. If we could somehow survive without using markets at all, our quality of life would be rather abysmal. It is natural to feel that an institution that is so (...) crucial to our well-being must be valuable. And since moral evaluation can hardly be indifferent to our interests and their fulfillment, it might appear that there is nothing much to discuss here. The market's moral standing “has to be” high. (shrink)

In the first half of the 1970s, two books appeared which have subsequently been regarded as major works in political philosophy: John Rawls's A Theory of Justice, and Robert Nozick's Anarchy, State, and Utopia. Economists have devoted a considerable amount of ink to commentary, pro and con, on A Theory of Justice; and it is getting to be a rare public finance textbook that does not, in its discussion of governmental redistribution, describe the Kantian contract made behind the veil of (...) ignorance. On the other hand, while Nozick has not exactly been ignored, economists have not joined the debate over Anarchy, State, and Utopia with the same gusto. When economists have joined the debate, their concern has been, more often than not, with Nozick's entitlement theory of distributive justice, as is the case with Varian and Sen. What is largely missing, then, is any economic analysis of the processes that give rise to Nozick's morally legitimate state, which he calls the minimal state, and the characteristics and likely activities of the minimal state within the moral boundaries set by Nozick, his assertions to the contrary notwithstanding. (shrink)

We present the first comprehensive theory of fairness that conceives of fairness as having two dimensions: a comparative and an absolute one. The comparative dimension of fairness has traditionally been the main interest of Broomean fairness theories. It has been analysed as satisfying competing individual claims in proportion to their respective strengths. And yet, many key contributors to Broomean fairness agree that ‘absolute’ fairness is important as well. We make this concern precise by introducing the Fairness formula and the absolute (...) priority rule and analyse their implications for comparative fairness. (shrink)

Philosophy Compass, Volume 17, Issue 4, April 2022.

This essay is a review of Ronald Dworkin's recent essay on equality of resources. Many of the ideas discussed by Dworkin have also been examined by economists with, I believe, considerable insight. Unfortunately, economists tend to write for economists, not for philosophers, and their insights are seldom communicated properly to noneconomists. Of course, the same criticism can be levied on philosophers! But perhaps legal theorists are less subject to this criticism. One of the great contributions of Dworkin is that he (...) is very readable; and the quality of his exposition makes these ideas accessible to a wide audience of philosophers, lawyers, and social scientists in general. (shrink)

Radical and liberal theories of egalitarianism are distinguished, in large part, by the differing degrees to which they hold people responsible for their own well-being. The most liberal or individualistic theory calls for equality of opportunity. Once such “starting gate equality,” as Dworkin calls it, is guaranteed, then any final outcome is justified, provided certain rules, such as voluntary trading, are observed. At the other pole, the most radical egalitarianism calls for equality of welfare. In between these two extremes are (...) egalitarian proposals that equalize more than conventional opportunities, yet less than full welfare. Sen speaks of equality of basic capabilities as a goal; implementing that requires more than starting gate equality, because some will require more resources than others to attain the same capabilities. Meeting basic needs is another objective. Equality of needs fulfillment is perhaps less radical than equality of basic capabilities and more radical than equality of opportunity. Rawls takes equality of primary goods as a benchmark; he distinguishes primary goods from welfare, but includes among them goods that are more complicated than conventional resources and opportunities, all of which are supposed inputs into any conception of welfare. One could imagine proposing an egalitarianism that equalized some quite measurable outcome across populations, such as infant mortality. That would be an outcome-equalizing theory where the rate of infant mortality is a proxy, presumably, for some more complicated maximand, such as the degree of wellbeing of a population. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

Is there anything morally special about free exchange? In asking this, I am asking not only about extreme, so-called “libertarian” views, on which free exchange is sacrosanct, but about more widespread, moderate views, on which there is at least something morally special about free exchange. On these more compromising views, other moral considerations may override the moral importance of free exchange, but even when rights of free exchange are restricted for good reason, something morally important is lost. For some, free (...) exchange may preserve liberty, in some morally significant sense, or realize some such moral value as “to each his own.” Alternatively, a system of free exchange may have a special moral status by virtue of the kinds of pragmatic arguments that economists give, arguments that free exchange produces good social results. Whether free exchange has any such virtues as these is the broad question I address in this paper. I offer what I have to say somewhat in the spirit of an overview. Philosophical scrutiny and economic analysis combine, it seems to me, to delineate fairly clearly what is, and what is not, morally special about free exchange. (shrink)

This thesis has two aims. The first aim is to set out an argument for social insurance in the form of compulsory income insurance in the event of sickness or unemployment, and to explore two lines of arguments for social insurance policies that are commonly associated with an active welfare state that seeks to prevent or reduce reliance on social insurance. The second aim is to outline and defend an account of legitimacy that takes moral autonomy seriously by making legitimacy (...) partly dependent on our entrenched values and preferences. The first aim is relevant for articles I-VI. In article I it is argued that the extent to which behavioural responses to social insurance is seen as ethically problematic, it is primarily a problem that concerns the institution rather than the morality of the individual whose behaviour is influenced by social insurance. Thus, insofar as behavioural responses to social insurance are an ethical problem, it is a problem for political philosophy rather than individual ethics. In article II an argument for social insurance in the form of compulsory income insurance in the event of sickness or unemployment is presented, viz. the argument from autonomy. It is based on a concern for the protection of our identity according to what is called a “thick” conception of the person, which holds that our identities as separate persons are constituted by our central aims and commitments. It is also argued that contrary to what has been claimed by its opponents; social insurance needs not lead to the bad risks exploiting the good risks, or be head-on in conflict with individual freedom. Article III identifies normative issues that deserve attention in relation to in relation to a general introduction of prevention policies in social insurance and market insurance. It is argued that the importance of these issues suggests that arguments and distinctions drawn from moral and political philosophy should play a more prominent role both in the debate on the shift towards an active welfare state and the use of prevention policies in market insurance. Article IV is a response to comments from Professor David Buchanan initiated by article III. Article V explores what is called the argument from autonomy for reduced compensation rates in social insurance or making compensation from such insurance conditional on different kinds of requirements such as participation in rehabilitation or vocational training. It is argued that such policies are justified if they tend to ensure an adequate level of autonomy, where autonomy is understood in the sense of a “thick” conception of personal autonomy based on Norman Daniel’s extension of the principle of fair equality of opportunity. Article VI discusses the objection that arguments pertaining to the principle of fairness often are irrelevant since the principle of fairness is based on the acceptance of the relevant benefits. It is argued that this objection from non-acceptance fails because we can – and do – accept the benefits form such institutions on a practical level and this is enough to ground obligations pertaining fairness. The implications of this argument for policies associated with the active welfare state are explored, taking a reform of the Swedish sickness insurance as an example. The second aim is relevant for article VII. In article VII it is argued that an account of legitimacy should satisfy three conditions. The justification thesis and the legitimacy thesis are presented as accounts of justification and legitimacy respectively. It is argued that the proposed accounts satisfy these conditions. An account of political obligations is also given. (shrink)

Although risk and uncertainty are inevitable aspects of the sustainability problem, they are often neglected in the sustainability discourse, especially in the economic analysis of sustainable development. We argue that this deprives the sustainability discourse of interesting connections to risk management. We show that defining sustainability as the obligation to limit the risk of harming future individuals provides a framework in which tools from risk management, like mean-variance analysis, can be employed to analyze planning decisions and to calculate a risk-minimizing (...) policy mix. Furthermore, we discuss whether such a notion of sustainability can be an ethically tenable sustainability concept and how a positive probability of harming future individuals might be defended. (shrink)

This paper investigates the relationship between economic theory and theories of justice in the design of public policy. In particular, it focuses on the role of mechanism design in policy contexts beset with issues of social, racial and distributive justice. Economists’ involvement in redesigning Boston’s algorithm for allocating K-12 students to public schools serves as an instructive case study. The paper draws on the distinction betweenideal theoryandnon-ideal theoryin political philosophy and the concept ofperformativityin economic sociology to argue that mechanism design (...) can enact elaborate ideal theories of justice. Anormative gapthus emerges between the goals of the policymakers and the objectives of economic designs. As a result, mechanism design may obstruct stakeholders’ avenues for normative criticism of public policies, and serve as a technology of depoliticization. (shrink)

This article considers and ultimately rejects three prominent liberal egalitarian strategies for safeguarding the occupational freedom of the economically talented. First, Dworkinian concerns regarding the envy of the talented for the less talented are shown to be insufficient to rule out occupationally coercive taxation. Second, Rawlsian arguments about the priority of basic liberties in general and freedom of occupation in particular are shown to be unsuccessful, primarily because Rawls lacks the theoretical resources to protect freedom of occupation as a basic (...) liberty. Finally, concerns about the practical difficulty and moral undesirability of gathering the information necessary to implement occupationally coercive taxation are shown to be insufficient to rule out such taxation. The aim of the article is not to lead liberal egalitarians to reject freedom of occupation. Rather, the aim is to highlight the difficulties in protecting freedom of occupation and to motivate work on alternative liberal egalitarian strategies for safeguarding this important economic liberty. At the end of the article, a hypothesis is put forward for why occupationally coercive taxation should be rejected that appeals to the prohibition on using people as means. (shrink)

G.A. Cohen’s book brings together and elaborates on articles that he has written on selfownership, on Marx’s theory of exploitation, and on the future of socialism. Although seven of the eleven chapters have been previously published (1977-1992), this is not merely a collection of articles. There is a superb introduction that gives an overview of how the chapters fit together and of their historical relation to each other. Most chapters have a new introduction and often a postscript or addendum that (...) connect them with other chapters. And the four new chapters (on justice and market transactions, exploitation in Marx, the concept of self-ownership, and the plausibility of the thesis of self-ownership) are important contributions that round out and bring closure to many of the central issues. As always with Cohen, the writing is crystal clear, and full of compelling examples, deep insights, and powerful arguments. Cohen has long been recognized as one of the most important exponents of analytic Marxism. His innovative, rigorous, and exciting interpretations of Marx’s theories of history and of exploitation have had a major impact on Marxist scholarship. Starting in the mid-1970s he has increasingly turned his attention to normative political philosophy. As Cohen describes it, he was awakened from his “dogmatic socialist slumbers” by Nozick’s famous Wilt Chamberlain example in which people starting from a position of equality (or other favored patterned distribution) freely choose to pay to watch Wilt Chamberlain play, and the net result is inequality (or other unfavored pattern). During the subsequent twenty years, political 1 philosophy has benefited from his thinking about the nature and plausibility of the thesis of selfownership, and about the scope and demands of equality. In what follows I will focus solely on the material dealing with self-ownership, but first I shall mention some of the interesting material on Marxism and socialism that I will be ignoring. First, at various points Cohen discusses how something like a principle of self-ownership is latent in the standard Marxist condemnation of capitalist exploitation (e.g., the capitalist steals labor time from the laborer).. (shrink)

Envy and blame are two concepts that add social preferences to the economic behavior model of homo economicus. These have already been studied in general distributional issues as well as in the Edgeworth box. Building on this, these social preferences are examined specifically in the work-leisure model and applied to the example of a UBI. Here it is shown that envy is rather triggered by different endowments of individuals and blame only by different preferences. In the discussion about a UBI, (...) this insight provides clarity about the normative basis of arguments against “free riders”. In terms of constitutional economics, envy can be combated through equality of opportunity, while blame can be contained through paternalism, at the expense of freedom of action. (shrink)

El cuidado de la reciprocidad y de la imparcialidad es fundamental en la tradición de la filosofía liberal. Las teorías liberales y solidarias de la justicia aspiran a establecer un acceso igual a las oportunidades y a los recursos a todos los individuos dentro de la comunidad. Sin embargo la dificultad principal que se encuentra reside en la determinación y la identificación de los recursos pertinentes que se debe tomar en cuenta. Ahora bien el análisis demuestra que ni el enfoque (...) de Rawls sobre los bienes primarios ni el de Dworkin, apoyado en una subasta de las dotaciones tan internas que externas, convienen. ¿Cuál es desde entonces el enfoque lo mas satisfactorio? ¿Debemos revolver al de la igualdad del bienestar como el análisis, propuesta por Roemer, de la posición de Dworkin le sugiere? ¿Debemos privilegiar el punto de vista de la igualdad de las ?realizaciones sociales fundamentales?? Tal son las perspectivas que queremos explorar. (shrink)

Any ethical argument involving the problems of access to assisted reproductive technologies should entail the discussion of the decision protocol and consider the individual deliberating on the appropriateness of these remedies from the point of view of self and community. Yet, arguments based on patients' own moral calculations are rare in the bioethics literature. The moral voice behind most discourses concerning ARTs is that of an outwardly independent spectator, who nonetheless proceeds to justify a personally significant worldview in the utilization (...) of these resources. Investigators grounded in social and legal sciences have offered relevant arguments in this regard, but because their discourses are derived from research protocols specific to their respective disciplines, they fail to provide a general rationale applicable to moral deliberation. (shrink)