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...

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Detalles Bibliográficos
Publicado en:Review of Economic Studies Vol. 44; no. 1; pp. 1 - 22
Autor principal: Hatta, Tatsuo
Formato: Artículo
Publicado: Oxford University Press / USA Feb77
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Theory of Piecemeal Policy Recommendations.
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        au: Hatta, Tatsuo
        affil: Saitama University, University of Kentucky
      su:
        Demand function
        Prices
        Economic policy
        Economics
        Neoclassical school of economics
        Social sciences
        United States
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          United States
          Demand function
          Prices
          Economic policy
          Economics
          Neoclassical school of economics
          Social sciences
      ab: 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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    language: English
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