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The Analysis Of Equity-Efficiency Trade-Off In The European Union Economy

  • Socol Cristian

    ()

    (Academy of Economic Studies, Department of Economics, Bucharest)

  • Socol Aura Gabriela

    ()

    (Academy of Economic Studies, Department of Economics, Bucharest)

  • Marinas Marius-Corneliu

    ()

    (Academy of Economic Studies, Department of Economics, Bucharest)

The European Union’s economic evolution for the last sixty years is specific to the long term stages of the economic cycle, of Kondratieff type. The economic expansion period has been characterized by a higher efficiency level (growth in productivity, in the labour occupation degree) which favoured the reducing of the inequalities related to incomes through the redistribution process. The economic recession stage showed that, under the terms of an increased unemployment, of a low aggregate demand and of a less flexible aggregate supply, the economic efficiency level is relatively lower. On these conditions, the providing of social equity (of the cohesion) will affect negatively the efficiency degree, fact which will extend the period of economic recession within The European Union.

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Article provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.

Volume (Year): 2 (2008)
Issue (Month): 1 (May)
Pages: 442-448

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Handle: RePEc:ora:journl:v:2:y:2008:i:1:p:442-448
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  1. McQuinn, Kieran & Whelan, Karl, 2006. "Conditional Convergence Revisited: Taking Solow Very Seriously," Research Technical Papers 7/RT/06, Central Bank of Ireland.
  2. C�cile Denis & Kieran Mc Morrow & Werner R�ger, 2006. "Globalisation : trends, issues and macro implications for the EU," European Economy - Economic Papers 254, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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