Overview
- Develops and legitimates a new protocol for economic-efficiency analysis
- Investigates the implications of the General Theory of Second Best for economic-efficiency analysis
- Illustrates how its third-best protocol differs from the various protocols economists currently use
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Table of contents (11 chapters)
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Front Matter
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Back Matter
Keywords
About this book
This book examines the implications of The General Theory of Second Best for analyzing the economic efficiency of non-government conduct or government policies in an economically efficient way. It develops and legitimates an economically efficient economic-efficiency-analysis protocol with three unique characteristics: First, the protocol focuses separately on each of a wide variety of categories of economic inefficiency, many of which conventional analyses ignore. Second, it analyzes the impact of conduct or policies on each of these categories of economic inefficiency, primarily by predicting the respective conduct’s/policy’s impact on the distortion that the economy’s various Pareto imperfections generate in the profits yielded by the resource allocations associated with the individual categories of economic inefficiency—i.e., on the difference between their profitability and economic efficiency. And third, it is third-best—i.e., it instructs the analyst toexecute a theoretical or empirical research project if and only if the economic-efficiency gains the project is expected to generate by increasing the accuracy of economic-efficiency conclusions exceed the predicted allocative cost of its execution and public financing. The book also uses the protocol to analyze the economic efficiency of specific policies so as to illustrate both how it differs from the protocols that most applied welfare economists continue to use and how its conclusions differ from those produced by standard analysis.
Authors and Affiliations
About the author
Bibliographic Information
Book Title: Welfare Economics and Second-Best Theory
Book Subtitle: A Distortion-Analysis Protocol for Economic-Efficiency Prediction
Authors: Richard S. Markovits
DOI: https://doi.org/10.1007/978-3-030-43360-4
Publisher: Springer Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: Springer Nature Switzerland AG 2020
Hardcover ISBN: 978-3-030-43359-8Published: 31 May 2020
Softcover ISBN: 978-3-030-43362-8Published: 31 May 2021
eBook ISBN: 978-3-030-43360-4Published: 30 May 2020
Edition Number: 1
Number of Pages: XXIII, 356
Number of Illustrations: 9 b/w illustrations
Topics: Social Choice/Welfare Economics/Public Choice/Political Economy, Public Law, Public Policy, Economic Policy