The Intervention Principle
This paper investigates efficient policy interventions in market economies, establishing a general policy intervention result and explaining why more general results are not possible. The paper shows the applicability of the methodology to a number of new results in the theory of international trade, including policy intervention in the presence of increasing returns to scale. The analytical tools are not based on calculus, but set theory, agent optimization, and market clearing. They apply to discrete comparisons as well as for small changes. Copyright © 2006 The Author; Journal compilation © 2006 Blackwell Publishing Ltd.
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Volume (Year): 14 (2006)
Issue (Month): 2 (May)
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