This paper derives a basic formula for the measure of social welfare, a second order approximation to the difference of the value of the Bergson-Samuelson social welfare function between the socially optimal resource allocation and the one in the present suboptimal economy. We discuss pros and...

How the law and the social norm interact with each other in the legalized modern society, whether the law completely replaces the pre-existing social norm or they coexist, and whether their interaction achieves an efficient system of social rules or there is innate inefficiency, have remained...

This paper derives formulae that show the marginal benefits of public inputs in second-best economies with tax distortions. The values of the change in the aggregate net output vector (and in some cases the change of profit income) evaluated at appropriate shadow prices show their marginal...

The Pigovian rule for the optimal public goods provision with distortionary taxation is given a new interpretation. It relates the Pigovian rule to project evaluation rules in terms of shadow prices. Our formula for the Pigovian rule is compared with that given by existing literature for cases...

Harold Hotelling's celebrated theorem on the optimality of marginal cost pricing was criticized first by Frisch and later by Silberberg on the grounds that he did not use the marginal cost pricing condition in his original proof and hence that it did not constitute a valid proof. This note...