Difference between revisions of "Efficiency vs. Equity"

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(Pareto Efficiency)
 
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Allocation so that no one can be made better off  
 
Allocation so that no one can be made better off  
  
[[File:paretoefficiency.gif]]
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[[File:paretoefficiency.gif|frame|link=pageEfficiency vs. Equity|alt=alt text|bahahahah]]  
  
 
Microeconomic Definition of Maximization of Utility via Minimization of Cost
 
Microeconomic Definition of Maximization of Utility via Minimization of Cost
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counterarg...$ used for equity has a higher effect on economic growth, spending chain, human capital
 
counterarg...$ used for equity has a higher effect on economic growth, spending chain, human capital
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== Social Welfare Functions ==
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Cost-Benefit analysis--it's about trade offs
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Utilitarianism
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Rowlslian

Latest revision as of 17:10, 8 June 2011

Economic Efficiency

Pareto Efficiency

Vilfredo Pareto

Allocation so that no one can be made better off

alt text
bahahahah

Microeconomic Definition of Maximization of Utility via Minimization of Cost

failure to account for equity

"what if"...society can derive utility from equity...(MBequity>MCequity => Efficiency = Equity)

conflict of incentives, because someone can be made better off, they have an incentive to not support equity

cost effects of attempting (Effect on PPF, inhibit econ growth...$ could be used on capital)

counterarg...$ used for equity has a higher effect on economic growth, spending chain, human capital

Social Welfare Functions

Cost-Benefit analysis--it's about trade offs

Utilitarianism

Rowlslian