Need-Based Justice and Distribution Procedures: The Perspective of Economics

Abstract

In this chapter, we present both macro-empirical and micro-experimental evidence of how subjects redistribute resources. We identify a moderate level of redistribution both in macro-empirical and experimental work. We present evidence that moderate levels of redistribution are due to the preferences of individuals rather than other possible explanations, such as the interests of elites or institutions. Particularly, we find that moderate redistribution, which transfers resources based on the fairness principle of need-based justice is generally accepted and brings along productivity-enhancing effects instead of efficiency losses.