A Theory of Piecemeal Policy Recommendations.
The main objective of the present paper is to formulate some piecemeal policy recommendations which would definitely result in a move towards efficiency. In particular, we will prove the following: (a) a policy which reduces all price distortions uniformly will improve the welfare of the economy, if...
| Publicado en: | Review of Economic Studies Vol. 44; no. 1; pp. 1 - 22 |
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| Autor principal: | |
| Formato: | Artículo |
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Oxford University Press / USA
Feb77
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | The main objective of the present paper is to formulate some piecemeal policy recommendations which would definitely result in a move towards efficiency. In particular, we will prove the following: (a) a policy which reduces all price distortions uniformly will improve the welfare of the economy, if it is stable in the Marshallian sense. (b) a policy which brings the highest distortion to the level of the next highest will improve the welfare of the economy, if the good with the highest distortion is substitutable for all the other goods and if the economy is stable in the Marshallian sense. |
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