By Jacques Drèze (auth.), Parkash Chander, Jacques Drèze, C. Knox Lovell, Jack Mintz (eds.)

ISBN-10: 0387255338

ISBN-13: 9780387255330

ISBN-10: 0387255346

ISBN-13: 9780387255347

The twenty-two papers accrued during this quantity illustrate the itinerary of Henry Tulkens, an utilized theorist, at the celebration of his retirement from educating. the gathering is based in 4 parts:

I. Decentralized source allocation methods for private and non-private goods

II. setting, public items and externalities

III. potency analysis

IV. economic festival and optimality

The 4 images above evoke a key notion, technique or version utilized in every one of those 4 parts:

> MDP-type procedures to figure out possible paths to potency and coalitional stability.

> CLIMNEG international Simulation version to discover substitute environmental eventualities for the planet.

> loose Disposal Hull potency research to drop convexity and aid take care of outliers.

> Non Cooperative monetary Equilbria to represent the results of monetary competition

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Extra resources for Public goods, environmental externalities and fiscal competition

Sample text

If, in particular, Ti (0) ¼ 08i 2 N, this state is even a Lindahl equilibrium. In both cases, no change occurs. If however these demands and supply do not determine a feasible state, then the process specifies (i) directions of change u_ i for the individual unit taxes and (ii) directions of change T_ i for the lump sum transfers, to both of which the consumers are supposed to respond by adjusting their individual demands zi and yi ; the producer adjusts his production to the change in the average demand "z.

20 It may be of interest to look in some detail at Malinvaud’s quite specific description of planning,21 because the significance it gives to the latter renders this institution rather remote from what Samuelson (1966, pp. 102–3), or Buchanan (1976, p. 20) seem to have in mind when they refer to an ‘omniscient planner’–an expression that conveys a sceptical opinion on their part as to the realism of assuming the existence of such an institution. Essentially, there is a n þ 2nd agent added to those of our original economy, under the name of Central Planning Board (CPB).

Ui (t), . . , un (t)) and the lump sum transfers (T1 (t), . . , Ti (t), . . , Tn (t)); together, they determine individual demands zi (ui (t), Ti (t)), ji (ui (t), Ti (t)), 8i 2 N, from which new changes u_ i (t) and T_ i (t) are in turn determined. As with the Lindahl process, this process generates a path of unfeasible states in the commodity space. Malinvaud (1970–71, Section 5) proves, under a somewhat restrictive assumption on the initial state, that this path converges to a feasible state which is a pseudo-equilibrium, hence an optimum.

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Public goods, environmental externalities and fiscal competition by Jacques Drèze (auth.), Parkash Chander, Jacques Drèze, C. Knox Lovell, Jack Mintz (eds.)


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