ECONOMIC JUSTICE AND INCOME DISTRIBUTION: TOWARDS A THEORY OF DISTRIBUTIVE JUSTICE (SOCIAL CHOICE, WELFARE)

Within the framework of social choice theory, various economic decision rules as embodying different notions of economic justice are defined and examined. The relationships among economic decision rules and their implications as political philosophy are clarified. It is found that the Pareto rule is the most conservative decision rule and the leximin and the utilitarian rules are at the other end of the spectrum. The concepts of conservatism and liberalism as a political philosophy are used in a sense that planners are involved in the formulation of economic policy based on notions of economic justice.;A system of rank positional axioms is proposed. The key value premise is expressed in the Rank Positional Equity Axiom (RPEA) which requires that more weight be given to the preference of worse off ranking individuals. The utilitarianism, the maximin rule, and the leximin rule are characterized by using some axioms. An important linkage between the leximin rule and the Gini coefficient of income inequality is established. The RPEA is shown to play an important role of this linkage.;A model on the relationships among economic decision rules, types of economic policy, and economic outcomes is developed. Specific relations among the minimax, the least difference, the highest ratio, and the maximin rules are discussed for expanding and contracting economies. It is found that these relations are of particular relevance to the discussions of development process.;With reference of these formal frameworks, experiences of selected developing economies are discussed, paying particular attention to the growth performances, improving relative inequality, and alleviating absolute poverty. Countries selected are Taiwan, Yugoslavia, Sri Lanka, South Korea, Costa Rica, India, The Phillipines, Brazil and Mexico. It is discussed that the types of government policies play an important role in the process. An interesting comparison between Yugoslavia and Sri Lanka is made in the framework of expanding and contracting economies. The discussion is the first attempt to apply and test our theoretical model for actual economies.