✦ LIBER ✦

To transfer or to destroy

✍ Scribed by Milind Rao

Book ID: 104654298
Publisher: Springer
Year: 1993
Tongue: English
Weight: 439 KB
Volume: 10
Category: Article
ISSN: 0176-1714
DOI: 10.1007/bf00183345

No coin nor oath required. For personal study only.

✦ Synopsis

The transfer problem is by now well understood. In an important b o o k Chichilnisky-Heal provide an example of a related paradox -the destroy paradox -in the context of a Walrasian stable economy. It is evident, however, that the paradox depends on the underlying data -tastes, preferences, and net export positions -of the economy. This paper gives necessary and sufficient conditions on the underlying data of a globally Walrasian stable Leontief economy for the occurrence of this paradox. The relationship between the transfer and destroy paradoxes in an economy with Leontief preferences is explored.

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