Pareto Efficiency with Costly Transfers.

Abstract

The concept of Pareto efficiency, as ordinarily applied, implies that costless redistributive transfers are possible. This paper generalizes the concept to a simple case where transfers of a given good involve losses mesasurable in that good. The Pareto efficiency of a given allocation then depends on the initial distribution endowments. For a given allocation, then, we can ask: (1) whether there exists any endowment allocation for which the given allocation is Pareto efficient; and (2) if there is, what is the class of endowment allocations for which it is efficient. These questions are answered in the paper.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1979
Accession Number
ADA069212

Entities

People

  • Kenneth J. Arrow

Organizations

  • Harvard University

Tags

Communities of Interest

  • Advanced Electronics
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Coefficients
  • Commodities
  • Convex Sets
  • Economic Policy
  • Economics
  • Efficiency
  • Equations
  • Governments
  • Inequalities
  • Mathematics
  • Military Research
  • Theorems
  • United States
  • United States Government

Fields of Study

  • Economics

Readers

  • Combustion and Flow Dynamics.
  • Economics
  • Graph Algorithms and Convex Optimization.