Fairness or efficiency in tax systems

Abstract

An epistemic critique at the intersection of law and economics is illustrated by the question: Should laws prioritize economic efficiency over distributive justice?

In economic analysis, the mainstream view—influenced primarily by the work of Kaplow and Shavell in 1994—holds that laws should be designed exclusively to maximize efficiency. Furthermore, this perspective argues that, to achieve equity, redistribution should be carried out solely through the tax system (taxes and transfers), on the grounds that this method causes fewer economic distortions.