Pareto-optimality and gains-form-trade: a public choice interpretation

✍ Scribed by Charles K. Rowley; Martin Walker

• Publisher: Springer US
• Year: 1979
• Tongue: English
• Weight: 238 KB
• Volume: 34
• Category: Article
• ISSN: 0048-5829
• DOI: 10.1007/bf00125758

✦ Synopsis

Pareto-relevant marginal externalities are pervasive in the complex modern advanced economies and the policy instruments that have been devised to deal with them are legion. This paper reinterprets the central issues of a debate concerning the effectiveness of one such instrument, namely the Pigovian tax. By extending the analysis to incorporate recent developments in public choice theory, the apparently divergent views of the principal combatants, Shibata [6, 7] and Buchanan-Stubblebine [2, 3] can be rendered compatible.