Distributive Justice, Welfare Economics, and the Theory of Fairness
Author(s)
Varian, Hal R.
Abstract
Theories of justice emphasize either end-state or procedural principles. End-state principles, as found in John Rawls’ theory of “justice as fairness” and also in welfare economics, evaluate current distributions in light of future ideals. Procedural theories assess current distributions according to the justice of past distributions and past transfers. In the year prior to the publication of his famous treatise on libertarian political philosophy, Anarchy, State and Utopia, Robert Nozick wrote an insightful piece defending a distributive theory of justice based on procedural principles. End-state theories, Nozick argued, ignore historical and procedural aspects of justice. This article defends welfare economics from Nozick’s criticisms and offers a theory of fairness that pays more attention to the matter of equity in initial allocations.
