scholarly journals Measurement of inequality of opportunity: A normative approach

2021 ◽  
Author(s):  
Kristof Bosmans ◽  
Z. Emel Öztürk
Keyword(s):  
Income Distribution ◽  
Social Welfare ◽  
Inequality Of Opportunity ◽  
Welfare Gain ◽  
Allocation Rules ◽  
Normative Approach ◽  
Ex Post ◽  
Ex Ante ◽  
Measurement Of Inequality

AbstractWe develop a normative approach to the measurement of inequality of opportunity. That is, we measure inequality of opportunity by the welfare gain obtained in moving from the actual income distribution to the optimal income distribution of the total available income. Our study brings together the main approaches in the literature: we axiomatically characterize social welfare functions, we obtain prominent allocation rules as their optima, and we derive familiar classes of inequality of opportunity measures. Our analysis captures moreover the key philosophical distinctions in the literature: ex post versus ex ante compensation, and liberal versus utilitarian reward.

Individual Responsibility and Equality of Opportunity

2016 ◽  
Author(s):  
Francisco H. G. Ferreira ◽  
Vito Peragine
Keyword(s):  
Economic Development ◽  
Social Justice ◽  
Equal Opportunity ◽  
Individual Responsibility ◽  
Inequality Of Opportunity ◽  
Economic Literature ◽  
Ex Post ◽  
Compensation Principle ◽  
Ex Ante ◽  
Measurement Of Inequality

Building on earlier work by political philosophers, economists have recently sought to define a concept of equity that accommodates the fairness of reward to individual responsibility and effort, while allowing for the existence of some inequalities that are unfair and should be compensated. This chapter provides a critical review of the economic literature on equality and inequality of opportunity. A simple “canonical model” of equal opportunity is proposed, and used to explore the two fundamental concepts in this (relatively) new theory of social justice: the principles of compensation and reward. Ex ante and ex post versions of the compensation principle are presented, and the tensions between them are discussed. Different approaches to the measurement of inequality of opportunity—and empirical applications—are reviewed, and implications for the measurement of poverty and of the rate of economic development are discussed.

scholarly journals A Theory of Utilization Review

2003 ◽  
Vol 2 (1) ◽  
Author(s):  
David Dranove ◽  
Kathryn E. Spier
Keyword(s):  
Managed Care ◽  
Social Welfare ◽  
Treatment Decisions ◽  
Utilization Review ◽  
Physician Incentives ◽  
Ex Post ◽  
Ex Ante ◽  
Managed Care Organizations

Abstract Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly, when physicians have incentives to significantly overtreat patients, UR can improve social welfare by eliminating unnecessary utilization. More surprisingly, UR can also improve welfare when physicians have incentives to significantly undertreat patients. In this case, UR filters out the least valuable cases, encouraging physicians to recommend more treatments. We also show that the effectiveness of UR depends on MCO precommitment to a treatment approval threshold. Ex ante optimal precommitment can make it appear that the MCO is inappropriately withholding care ex post.

scholarly journals Entrepreneurial Stewardship: Why Some Profits Should Be Used to Benefit Others

2020 ◽  
Vol 30 (4) ◽  
pp. 525-551 ◽  
Author(s):  
Jooho Lee
Keyword(s):  
Property Rights ◽  
Social Welfare ◽  
Moral Obligation ◽  
Market Process ◽  
Market Participants ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Ex Post ◽  
Ex Ante ◽  
The Difference

ABSTRACTEntrepreneurs should act as stewards of entrepreneurial rent. Entrepreneurial rent is the difference between the ex post value of a venture and its ex ante costs. It is the result of competition among buyers and sellers within the market process rather than the sole efforts of the entrepreneur. As a result, entrepreneurs should allocate entrepreneurial rent for the benefit of other market participants rather than consuming it for themselves. The moral obligation to steward entrepreneurial rent is consistent with traditional bases of property rights and the norm of social welfare maximization, and it applies to corporations and their shareholders, as well as individual entrepreneurs.

The New Old Efficiency Theories of Causation and Liability

2014 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Richard W. Wright
Keyword(s):  
Social Welfare ◽  
Fundamental Problem ◽  
Tort Law ◽  
Tort Liability ◽  
Liability Rule ◽  
Actual Causation ◽  
Ex Post ◽  
Ex Ante ◽  
The One ◽  
Ex Post Analysis

AbstractFor the last 40 years, efficiency theorists have attempted to demonstrate that tort liability in general and negligence liability in particular can best/only be explained by the hypothesis that judges are trying to maximize aggregate social welfare. Thirty years ago I published a pair of articles criticizing these attempts, noting especially the efficiency theorists’ inability to explain and justify the factual causation requirement in tort law. Nevertheless, the efficiency theorists have continued to make the same arguments. In this paper, I canvass the old arguments and their current restatements, including the attempts by some of the leading theorists to equate ex post analysis of actual causation with ex ante analysis of negligent conduct and attempts by others to explain the actual negligence liability rules. None of the rules proposed by the efficiency theorists is consistent with the practice of the courts, and none of them would promote efficient deterrence. Worse yet, the least descriptively plausible negligence liability rule proposed by the efficiency theorists is the one likely to be the least inefficient in actual practice, while the one assumed by most efficiency theorists will be the most inefficient. The fundamental problem with the efficiency theories is that they assume that the focus of law should be and is on the maximization of aggregate social welfare, rather than justice – the promotion of everyone’s equal external freedom in their interactions with others.

Ex-Ante and Ex-Post Performance of Optimal REIT Portfolios

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 8-9
Author(s):  
Ann C. Logue
Keyword(s):  
Ex Post ◽  
Ex Ante

Erreurs de prévision ex ante et ex post

1993 ◽  
Vol 108 (2) ◽  
pp. 135-138
Author(s):  
Pierre Malgrange ◽  
Silvia Mira d'Ercole
Keyword(s):  
Ex Post ◽  
Ex Ante
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