Definition
Posner’s proposal for wealth maximization in judiciary decisions has not been widely accepted, but the influence of the economic analysis of law it propelled has increased tremendously. In the face of criticism, Posner himself has retreated into a pragmatism with wealth maximization not the only principle used. This leads to a lack of both moral justification and consistency. This entry shows that, if not used as the ultimate objective, but as an instrument for welfare maximization, wealth maximization is much more acceptable, if it is also supplemented by appropriate redistribution in the general equality policy. This is especially so as efficiency supremacy in specific issues including the judiciary (close to wealth maximization) would then make every income group better off. This is so despite the presence of disincentive effects in general redistribution. The separation of the judiciary and the legislative may then also be justified.
Introduction
Around four decades ago,...
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Ng, YK. (2022). Wealth Maximization for Welfare: Efficiency and Equality Considerations. In: Marciano, A., Ramello, G.B. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_612-2
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DOI: https://doi.org/10.1007/978-1-4614-7883-6_612-2
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Latest
Wealth Maximization for Welfare: Efficiency and Equality Considerations- Published:
- 26 November 2021
DOI: https://doi.org/10.1007/978-1-4614-7883-6_612-2
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Original
Wealth Maximization: Efficiency and Equality Considerations- Published:
- 17 April 2018
DOI: https://doi.org/10.1007/978-1-4614-7883-6_612-1