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pareto improvement |
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pareto improvement any change in economic management that improves the situation of one or more members of the community without worsening the lot of anyone. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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No references found | Because, on one hand, if a single welfare function is assumed for the whole country, the distributional issue will be ignored as it will be difficult to rank social outcomes on the basis of potential Pareto improvement and, on the other hand, if one welfare function is assumed for each consumer and then all such functions are aggregated to represent a country as a whole, then the aggregation problem comes on the way, as consumers have diverse choices and interests. Repealing a tariff normally involves as many transfers imposing one; only a repeal that fully compensated all the losers qualifies as a pure Pareto improvement. As the author admits, though, by concentrating on the potential for Pareto improvement between indigenous security forces and domestic insurgents, his analysis vastly oversimplifies the internal dynamics of the Iraqi domestic situation. |
pareto improvement |
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