Anarchy, efficiency, and redistribution |
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Authors: | Dieter Bös Martin Kolmar |
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Institution: | a Department of Economics, University of Bonn, Adenauerallee 24-42, D-53113 Bonn, Germany b University of Konstanz, Universitätsstrasse 10, P.O. Box 5560 D136, D-78457 Konstanz, Germany |
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Abstract: | This paper develops a contractarian theory of the state and the existence of redistribution. The existence of rules of redistribution is explained without any recourse to the risk-aversion of agents. No veil of ignorance is needed. This avoids obligational problems inherent in most other contractarian theories of justice. Hence, this paper departs from the standard legitimization of redistribution as fundamental insurance and interprets it as stemming from a principle of reciprocity in trade. Since this paper deals with an anarchic society, the implementation of redistributional rules is constrained by the assumption of self-enforcement. We show that this assumption changes the interpretation of the state: the state is characterized by a particular design of equilibrium strategies, not by the existence of enforcement agencies. |
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Keywords: | Anarchy Constitutions Redistribution |
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