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1、EcientRedistribution:NewRulesforMarkets,States,andCommunitiesSamuelBowlesHerbertGintisDepartmentofEconomicsUniversityofMassachusettsAmherst,Massachusetts,01003January11,1998WewouldliketothankPranabBardhan,RobertBrenner,AlbertBreton,G.A.Cohen,MehreneLarudee,NancyFolbre,DavidLewi
2、s,KarlaHo ,PaulMalherbe,JohnRoemer,MicheleSalvati,PeterSkott,PhilippeVanParijs,ElisabethWod,ErikWright,andmembersofthePoliticalEconomyWorkshopattheUniversityofMassachusettsfortheirvaluablecontributionstothispaper.WewouldliketothanktheMacArthurfoundationforthe nancialsupportthatmad
3、ewritingthispaperpossible.11IntroductionSocialism,radicaldemocracy,socialdemocracy,andotheregalitarianmove-mentshave
ourishedwheretheysuccessfullycraftedthedemandsofdis-tributivejusticeintoaneconomicstrategycapableofaddressingtheproblemofscarcityandtherebypromisingtoimprovelivings
4、tandardsontheaver-age.Landredistribution,socialinsurance,egalitarianwagepolicies,centralplanning,andhumaninvestmentexpenditureshaveallbeenattractivewhentheypromisedtolinktheredistributionofeconomicrewardtoenhancingtheperformanceoftheeconomicsystemasawhole.Forthisreasoneconomicanal
5、ysishasalwaysbeencentraltothecon-structionofmoredemocraticandegalitarianalternativestocapitalismaswellasegalitarianreformsofcapitalismitself.Keynesianeconomics,forexample,supportedstateregulationofthemacroeconomyandwasalsoprovidedarationaleforincomeredistributiontothelesswello who
6、,byspendingalargerportionoftheirincomes,couldbereliedupontogeneratehigherlevelsofdemandforconsumergoodsandtherebysustainhigherlev-elsofemployment.Similarly,themodelofgeneralcompetitiveequilibriumwasdeployedbymarketsocialists,fromOskarLangetoJohnRoemer,todemonstratethepossibilityan
7、dadvantagesofplanninginasocialistecon-omy.ButtodaybothKeynesianismandplanninglackcredibility,anditap-1pearsthatthelefthasrunoutofeconomicmodels.Evenamongegali-tarians,theconvictioniswidespreadthatwhilesomecombinationofsocialdemocracy,marketsocialismandworkplacedemocracywouldbepref
8、erableondemocraticoregalitariangr
