Posner on Judicial Salaries:

Posner's views are generally consistent with mine: (1) it's hard to judge the efficiency of government salaries because they are not market-based; (2) there is no reason to believe that, as a rule, federal judges are underpaid; and (3) paying judges the same amount regardless of local cost of living makes little sense.

UPDATE: Whoops, my VC RSS feed doesn't seem to be working, and I didn't notice Ilya's posting on the same topic.