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The Distinctive Significance of Systemic Risk
Author(s) -
James Aaron
Publication year - 2017
Publication title -
ratio juris
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.344
H-Index - 10
eISSN - 1467-9337
pISSN - 0952-1917
DOI - 10.1111/raju.12150
Subject(s) - blame , harm , law and economics , collective responsibility , positive economics , systemic risk , economics , sociology , business , actuarial science , social psychology , psychology , law , political science , financial crisis , macroeconomics
This paper suggests that “systemic risk” (e.g., of financial market collapse, or of ecological calamity) has a distinctive kind of moral significance. Two intuitive data points need to be explained. The first is that the systematic imposition of risk can be wrongful or unjust in and of itself, even if harm never ensues. The second is that, even so, there may be no one in particular to blame. We can explain both ideas in terms of what I call responsibilities of “Collective Due Care.” Collective Due Care arguably precludes purely aggregative cost‐benefit decision‐making and requires one kind of “precautionary” attitude in public choice.