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Efficient, Pareto-improving processes

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  • Yun, Kwan Koo

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.

Suggested Citation

  • Yun, Kwan Koo, 2010. "Efficient, Pareto-improving processes," Journal of Mathematical Economics, Elsevier, vol. 46(3), pages 326-331, May.
  • Handle: RePEc:eee:mateco:v:46:y:2010:i:3:p:326-331
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    References listed on IDEAS

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    1. W. E. Diewert & A. H. Turunen-Red & A. D. Woodland, 1989. "Productivity- and Pareto-Improving Changes in Taxes and Tariffs," Review of Economic Studies, Oxford University Press, vol. 56(2), pages 199-215.
    2. d'Aspremont, Claude & Tulkens, Henry, 1980. "Commodity Exchanges as Gradient Processes," Econometrica, Econometric Society, vol. 48(2), pages 387-399, March.
    3. Dixit, Avinash, 1987. "On Pareto-improving redistributions of aggregate economic gains," Journal of Economic Theory, Elsevier, vol. 41(1), pages 133-153, February.
    4. Turunen-Red, Arja H & Woodland, Alan D, 1991. "Strict Pareto-Improving Multilateral Reforms of Tariffs," Econometrica, Econometric Society, vol. 59(4), pages 1127-1152, July.
    5. Weymark, John A., 1981. "Undominated directions of tax reform," Journal of Public Economics, Elsevier, vol. 16(3), pages 343-369, December.
    6. Guesnerie, Roger, 1977. "On the direction of tax reform," Journal of Public Economics, Elsevier, vol. 7(2), pages 179-202, April.
    7. Smale, S., 1974. "Global analysis and economics v : Pareto theory with constraints," Journal of Mathematical Economics, Elsevier, vol. 1(3), pages 213-221, December.
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