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Quantifying inefficiency in incomplete asset markets

Tirelli, Mario; Turner, Sergio - 2007

It is known that the incompleteness of asset markets causes inefficiency in almost every equilibrium. Yet unexplored is the ”size” of this inefficiency. The size of a Pareto improvement is the total willingness to pay for it, out of current consumption. Inefficiency is the maximum size of...

Persistent link: https://www.econbiz.de/10010318933

Towards sustainable carbon markets: Requirements for ecologically effective, economically efficient, and socially just emissions trading schemes

Rudolph, Sven; Lenz, Christine; Lerch, Achim; Volmert, … - 2011

existence often suffer from dilution in terms of ecological effectiveness, economic efficiency, and social justice. Thus, in … ecological effectiveness, economic efficiency and social justice and operationalizes them for giving design recommendations for … modern climate justice thinking in order to discuss the three criteria. In addition, design and implication analysis is …

Persistent link: https://www.econbiz.de/10010286393

When inefficiency begets efficiency

Gersbach, Hans; Haller, Hans - 2003

Collective consumption decisions taken by the members of a household may prove inefficient. The impact of such inefficient household decisions on market performance is investigated. At one extreme, market efficiency can occur even when household decisions are inefficient, namely when household...

Persistent link: https://www.econbiz.de/10010292768

Auctions under Payoff Uncertainty: The Case with Heterogeneous Bidder-Aversion to Downside Risk

Hu, Audrey; Zou, Liang - 2008

This paper characterizes the optimal first-price auction (FPA) and second-price auction (SPA) for selling rights, contracts, or licenses that involve ensuing payoff uncertainty for the winning bidder. The distribution of the random payoff is common knowledge, except that bidders have private...

Persistent link: https://www.econbiz.de/10010325804

One-sided private provision of public goods with implicit Lindahl pricing

Meier, Volker - 2010

We consider a sequential game in which one player produces a public good and the other player can influence this decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two (implicit) individual prices has to be equal to the resource...

Persistent link: https://www.econbiz.de/10010274724

Exploitation, Altruism, and Social Welfare: An Economic Exploration

Doepke, Matthias - 2013

Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare function. I first show that under the standard...

Persistent link: https://www.econbiz.de/10010319596

On equitable social welfare functions satisfying the weak Pareto axion: A complete characterization

Dubey, Ram Sewak; Mitra, Tapan - 2010

The paper examines the problem of aggregating infinite utility streams with a social welfare function which respects the Anonymity and Weak Pareto Axioms. It provides a complete characterization of domains (of the one period utilities) on which such an aggregation is possible. A social welfare...

Persistent link: https://www.econbiz.de/10010292058

Concerns for equity and the optimal co-payments for publicly provided health care

Hoel, Michael - 2005

In countries where health care is publicly provided and where equity considerations play an important role in policy decisions, it is often argued that an increase in co-payments is unacceptable as it will be particularly harmful to the less well-off in society. The present paper derives...

Persistent link: https://www.econbiz.de/10010261386

Measuring long-term inequality of opportunity

Aaberge, Rolf; Mogstad, Magne; Peragine, Vito - 2010

In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle. Our framework allows for both an ex-ante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure defined...

Persistent link: https://www.econbiz.de/10010269663

Preferences for redistribution and pensions: What can we learn from experiments?

Tausch, Franziska; Potters, Jan; Riedl, Arno - 2010

Redistribution is an inevitable feature of collective pension schemes and economic experiments have revealed that most people have a preference for redistribution that is not merely inspired by self-interest. Interestingly, little is known on how these preferences interact with preferences for...

Persistent link: https://www.econbiz.de/10010270867