“The Hardest of All the Problems”

This paper provides a history of the development Harold Hochman and James Rodgers’ (1969) theory Pareto optimal redistribution, which modeled income transfers as public good. redistribution provided an economic efficiency case for policy. After reviewing emergence at University Virginia its elaboration Urban Institute in early 1970s, describes M. Buchanan’s efforts to grapple with his colleague’s ideas context choice theory. Initially, Buchanan even more expansive argument than Rodgers (1969). By mid-1970s, though, largely rejected earlier approach theorized new criteria that were narrower scope.