25966 - Theory of Distributive Justice

Learning outcomes

The course offers an introduction to the economic analysis of the main theories of distributive justice. It aims to provide the conceptuals tools needed to allow students to understand the main theoretical issues and to take part, with sufficient precision and autonomy, to the contemporary political and economic debate.

Course contents

The course is divided in three parts. The first is a general introduction to the main theories of distributive justice. These theories will be studied in the social choice perspective and in the contractarian perspective as well. The second part in concerned with some deepenings, with particular attention to the contributions of Harsanyi, Rawls, Dworkin and Nozick. The third part is devoted to the discussion of some topics, both theoretical and empirical, which are particularly important in the contemporary debate.

 

PART I.

I.1 Introduction: social justice and economic analysis.

a)      Introduction to the theories of distributive justice.

b)      The role of value judgements in the economic analysis (liberal value judgements, the end state model; the procedural model; individual choice and social choice).

Required readings:

- Barr N., (2004), Economics of the Welfare State, Oxford University Press, ch. 3.

- Sugden R., (1981),  The Political Economy of Public Choice, Martin Robertson, Oxford, ch. 1 - 2.  

I.2 Distributive justice in a social choice perspective.

a)   Welfare economics (Pareto principle; social welfare ordering; social welfare function;  limits of the Pareto principle).

b)   Social welfare statements, interpersonal comparisons and distributive justice (social welfare function and Arrow impossibility theorem; rawlsian social welfare function; utilitarian social welfare function).

c)   Distributive justice as envy-free (envy-free allocation; envy-free and pareto efficiency; envy-free and interpersonal comparisons).

Required readings:

- Sugden R., (1981),  The Political Economy of Public Choice, Martin Robertson, Oxford, ch. 3 (paragraph 3.1) and ch. 4 (paragraph 4.4);

- Jehle and Reny (2001), Advanced Microeconomic Theory, Addison Wesley, ch. 6;

- Hammond P., (1991), Interpersonal comparisons of utility: why and how they are and should be made, in: Elster and Roemer (eds.), Interpersonal Comparisons of Well-Being, Cambridge University Press;

- Boadway and Bruce (1984), Welfare Economics, Basil Blackwell, ch. 6 (paragraph 2).

I.3 Distributive justice in a contractarian perspective.

a)      Introduction to the social contract theory (state of nature; mutual advantage, impartiality and reciprocity; collective agreement vs. social choice).

b)      Distributive justice, social contract and game theory (bargaining games solutions without interpersonal comparisons (Nash and Kalai-Smorodinski solutions); bargaining games solutions with interpersonal comparisons (utilitarian and proportional solutions); repeated games and equilibrium selection; evolutionary games).

Required readings:

- Negroni G., (2006), Lecture notes  on distributive justice in a contractarian perspective.

- Gaertner W., (2006), A Primer in Social Choice Theory,  Oxford University Press, ch. 8.

- Binmore K., (2005), Natural Justice, Oxford University Press, ch. 2.

PART II

 

II.1 Distributive justice and neo-utilitarianism.

a)       Introduction to Harsanyi (extended alternatives; extended preferences; the impartial observer; interpersonal and intrapersonal comparisons; Harsanyi's doctrine and the impartial observer theorem; the problem of commitment).

 

Required readings:

- Harsanyi J., (1982), Morality and the theory of rational behavior, in: Sen and Williams (eds.), Utilitarianism and Beyond, Cambridge University Press.

- Negroni G., (2006), Lecture Notes on Harsanyi.

 

II.2 Justice as fairness.

a)      Introduction to Rawls (political conception of justice; cooperation for mutual advantage; the fundamental structure of society; principles of justice; interpersonal comparisons and primary goods; the original position; the difference principle; comparisons with classic utilitarianism; the problem of  commitment);

b)      Comparison with Harsanyi.

c)      Cohen's criticism (incompatibility of self-regarding behavior with justice as fairness).

 

Required readings:

- Rawls J., (1972) , A Theory of Justice, Clarendon Press; ch. 1 (paragraphs 1 – 4); ch. 2 (paragraphs 11 – 17); ch. 3;

- Negroni G., (2006), Lecture Notes on Rawls.

II.3 Egalitarianism.

 

a)      Introduction to Dworkin (resources and preferences; personal responsibility and bad luck; distributive justice as equality of resources rather than equality of welfare; the role of competitive markets).

 

Required readings:

- Dworkin R., (1981), What is equality ? Part 2: Equality of resources, Philosophy and Public Affairs, 10, pp. 283 – 345.

- Roemer J., (1985), Equality of talent, Economics and Philosophy, 1, pp. 151 – 181.

II.4 Justice as entitlement.

 

a)      Introduction to Nozick (procedural and “end-states” models of justice; justice in aquisition, justice in tranfer and compensations; voluntary exchange and the role of competitive markets; self-ownership vs. ownership of external resources);

b)      Comparison with Rawls.

 

Required readings:

- Nozick R., (1974), Anarchy, State and Utopia, Basic Blackwell, ch. 7.

- Negroni G., (2006), Lecture Notes on Nozick.

PART III

Students must choose one topic a list. Each class presentation must be contained in 45 minutes. The list of the topics available will be given at the beginning of the course.

Readings/Bibliography

The readings are indicated in the syllabus. Any change will be promptly communicated.  The definitive syllabus and readings will be communicated at the first lecture and will be available on the web page of the course.

Teaching methods

The first two parts of the course are based on traditional lectures. The third part is based on class presentations by students.

Assessment methods

Evaluation is based (for the 70 %) on a two hours written exam and (for the 30 %) on the class presentation. The written exam covers the arguments of the first two parts of the course.

Teaching tools

Traditional blackboard and overhead projector. A web page with the detailed program, further teaching material, the results of the exams and the announcements. The web page can be found at http://www2.spfo.unibo.it/scienze/docenti/0506/negroni3.html

Links to further information

http://www2.spfo.unibo.it/scienze/docenti/0506/negroni3.html

Office hours

See the website of Giorgio Giovanni Negroni