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Efficient, Pareto-improving processes

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  • Yun, Kwan Koo
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    Abstract

    We give two optimization programs for determining whether Pareto improving local changes are possible. When they are, the programs compute them. Any procedure generating efficient and Pareto improving changes can be replicated by these programs. The two programs are dual to each other. We apply the programs to Pareto improving exchange processes and to Pareto-improving tax-tariff reforms.

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    File URL: http://www.sciencedirect.com/science/article/B6VBY-4Y1NTC7-1/2/cf1bd1b1b5100562dfacbe61d37ebec7
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 46 (2010)
    Issue (Month): 3 (May)
    Pages: 326-331

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    Handle: RePEc:eee:mateco:v:46:y:2010:i:3:p:326-331

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    Web page: http://www.elsevier.com/locate/jmateco

    Related research

    Keywords: Pareto improvement Duality Exchange process Piecemeal tax reform;

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    1. Diewert, W E & Turunen-Red, A H & Woodland, A D, 1989. "Productivity- and Pareto-Improving Changes in Taxes and Tariffs," Review of Economic Studies, Wiley Blackwell, vol. 56(2), pages 199-215, April.
    2. d'ASPREMONT, Claude & TULKENS, Henry, . "Commodity exchanges as gradient processes," CORE Discussion Papers RP -394, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Turunen-Red, Arja H & Woodland, Alan D, 1991. "Strict Pareto-Improving Multilateral Reforms of Tariffs," Econometrica, Econometric Society, vol. 59(4), pages 1127-52, July.
    4. WEYMARK, John A., . "Undominated directions of tax reform," CORE Discussion Papers RP -460, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Dixit, Avinash, 1987. "On Pareto-improving redistributions of aggregate economic gains," Journal of Economic Theory, Elsevier, vol. 41(1), pages 133-153, February.
    6. Guesnerie Roger, 1976. "On the direction of tax reform," CEPREMAP Working Papers (Couverture Orange) 7603, CEPREMAP.
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