The purpose of this paper is twofold. We first develop a contractarian theory of redistribution. The existence of rules of redistribution is explained without any recourse to the risk-aversion of individuals. Hence, we depart from the standard legitimization of redistribution as fundamental...

Property rights are undoubtedly among the most important institutions for economic efficiency. Still, by looking at reality we usually see property rights only imperfectly enforced. In this paper we identify uncertainty faced by an enforcer to be sufficient to explain this observation. This...

The purpose of this paper is twofold. We first develop a contractarian theory of redistribution. The existence of rules of redistribution is explained without any recourse to the risk-aversion of individuals. Hence, we depart from the standard legitimization of redistribution as fundamental...