An economics-based rationale for the Rawlsian social welfare program

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Dokumentart: Article
Date: 2020-09-15
Source: University of Tübingen Working Papers in Business and Economics ; No. 137
Language: English
Faculty: 6 Wirtschafts- und Sozialwissenschaftliche Fakultät
Department: Wirtschaftswissenschaften
DDC Classifikation: 330 - Economics
Keywords: Sozialpolitik
Other Keywords:
Rawlsian social welfare function
Aggregate relative deprivation (ARD)
Social stress
An algorithm of cost-effective policy response to ARD
Congruence of the algorithm with the Rawlsian social welfare program
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We show that a social planner who seeks to allocate a given sum in order to reduce efficiently the social stress of a population, as measured by the aggregate relative deprivation of the population, pursues a disbursement procedure that is identical to the procedure adhered to by a Rawlsian social planner who seeks to allocate the same sum in order to maximize the Rawlsian maximin-based social welfare function. Thus, the constrained minimization of aggregate relative deprivation constitutes an economics-based rationale for the philosophy-based constrained maximization of the Rawlsian social welfare function.

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