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Author: Barbara Ann White Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This article provides resolutions to a number of conundrums that have vexed policy-makers and scholars for some decades. The most significant conclusion is that efficiency and fairness concerns do not conflict but rather mutually support each other in the goal of maximizing social welfare. This is contrary to the more widely-held view by both advocates of law and economic reasoning and those favoring deontological concerns that a trade-off between fairness and efficiency is inevitable. This article demonstrates how the coalescence of the two frameworks, the cultivation of fairness with law and economics' efficiency maximization, yields greater enhancements of social welfare than efficiency alone, by simultaneously satisfying the criteria of both. The analysis also points out that more than one state of the world likely exists that satisfies both sets of criteria and the selection is political, not determined by any objective criteria, but chosen by the subjective criteria of the decision-maker. This article also discusses Kaplow and Shavell's noted and contrary assertion that a rigourous demonstration (with mathematical formality) shows that fairness concerns should never enter as an independent factor when policy makers seek to maximize social welfare. I show, however, that Kaplow and Shavell's conclusion rests on a mathematical construction of fairness that essentially strips it of all social-welfare enhancing properties, which does not comport with usual notions and purposes of fairness. It is this faulty mathematical construction that leads them to the conclusions they reach. The indeterminacy inherent in the Pareto efficiency criteria leading to multiple efficient states not only characterizes efficiency analysis's limitations but also delineates the scope for deontological choices. This article shows that a decision regarding efficient states necessarily requires deontological decisions; deontological decisions do not substitute for efficiency but compliment it. Finally, the concept of “parameters of fairness” is introduced as a means to circumscribe the maximum efficient states that are also maximum fairness states. Considering excessive corporate harm by way of example, a matter mainstream economic analysis has failed to resolve, I employ feminist legal theory as the deontological construct to yield a range of satisfactory efficient and fair resolutions. Though any deontological system would do, the conflation of feminist legal theory and law and economic analysis is particularly significant because, historically, supporters in each camp have been diametrically opposed to the tenets of the other.
Author: Barbara Ann White Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This article provides resolutions to a number of conundrums that have vexed policy-makers and scholars for some decades. The most significant conclusion is that efficiency and fairness concerns do not conflict but rather mutually support each other in the goal of maximizing social welfare. This is contrary to the more widely-held view by both advocates of law and economic reasoning and those favoring deontological concerns that a trade-off between fairness and efficiency is inevitable. This article demonstrates how the coalescence of the two frameworks, the cultivation of fairness with law and economics' efficiency maximization, yields greater enhancements of social welfare than efficiency alone, by simultaneously satisfying the criteria of both. The analysis also points out that more than one state of the world likely exists that satisfies both sets of criteria and the selection is political, not determined by any objective criteria, but chosen by the subjective criteria of the decision-maker. This article also discusses Kaplow and Shavell's noted and contrary assertion that a rigourous demonstration (with mathematical formality) shows that fairness concerns should never enter as an independent factor when policy makers seek to maximize social welfare. I show, however, that Kaplow and Shavell's conclusion rests on a mathematical construction of fairness that essentially strips it of all social-welfare enhancing properties, which does not comport with usual notions and purposes of fairness. It is this faulty mathematical construction that leads them to the conclusions they reach. The indeterminacy inherent in the Pareto efficiency criteria leading to multiple efficient states not only characterizes efficiency analysis's limitations but also delineates the scope for deontological choices. This article shows that a decision regarding efficient states necessarily requires deontological decisions; deontological decisions do not substitute for efficiency but compliment it. Finally, the concept of “parameters of fairness” is introduced as a means to circumscribe the maximum efficient states that are also maximum fairness states. Considering excessive corporate harm by way of example, a matter mainstream economic analysis has failed to resolve, I employ feminist legal theory as the deontological construct to yield a range of satisfactory efficient and fair resolutions. Though any deontological system would do, the conflation of feminist legal theory and law and economic analysis is particularly significant because, historically, supporters in each camp have been diametrically opposed to the tenets of the other.
Author: Arthur M. Okun Publisher: Brookings Institution Press ISBN: 0815726546 Category : Business & Economics Languages : en Pages : 171
Book Description
Originally published in 1975, Equality and Efficiency: The Big Tradeoff is a very personal work from one of the most important macroeconomists of the last hundred years. And this new edition includes "Further Thoughts on Equality and Efficiency," a paper published by the author two years later. In classrooms Arthur M. Okun may be best remembered for Okun's Law, but his lasting legacy is the respect and admiration he earned from economists, practitioners, and policymakers. Equality and Efficiency is the perfect embodiment of that legacy, valued both by professional economists and those readers with a keen interest in social policy. To his fellow economists, Okun presents messages, in the form of additional comments and select citations, in his footnotes. To all readers, Okun presents an engaging dual theme: the market needs a place, and the market needs to be kept in its place. As Okun puts it: Institutions in a capitalist democracy prod us to get ahead of our neighbors economically after telling us to stay in line socially. This double standard professes and pursues an egalitarian political and social system while simultaneously generating gaping disparities in economic well-being. Today, Okun's dual theme feels incredibly prescient as we grapple with the hot-button topic of income inequality. In his foreword, Lawrence H. Summers declares: On what one might think of as questions of "economic philosophy," I doubt that Okun has been improved on in the subsequent interval. His discussion of how societies rely on rights as well as markets should be required reading for all young economists who are enamored with market solutions to all problems. With a new foreword by Lawrence H. Summers
Author: Lee Anne Fennell Publisher: Edward Elgar Publishing ISBN: 9781781005293 Category : Cost effectiveness Languages : en Pages : 0
Book Description
Although the relationship between fairness and the economic concept of efficiency is usually cast as an adversarial one, this collection demonstrates the robust and diverse ways in which economics engages - and cannot avoid engaging - with fairness. Part I contains papers presenting positive analyses of fairness preferences and beliefs, which are fundamental means through which fairness matters for economic models. Part II turns to normative analysis and the broad question of how law should reconcile fairness and efficiency considerations. Part III presents a sampling of legal and policy applications in which both fairness and efficiency considerations prove important. Along with an original introduction by the editors this is a must-have volume that will appeal to students, academics and practitioners who are interested in this exciting field.
Author: Yuanzheng Ma Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We study a sequential resource allocation problem balancing fairness and efficiency for nonprofit operations. (Un)fairness is measured by the expected maximum demand shortfall among all communities, and (in)efficiency is measured by the expected remaining resources after allocation. We prove that the optimal allocation policy for each community is a switching policy, and characterized by a spoon-shaped function in terms of the maximum demand shortfall in previous communities. We also prove that the optimal allocation quantities are increasing in terms of the remaining resource level and realized demand in the current community with bounded sensitivities. On the basis of these results, we propose a simple heuristic policy and numerically show that it performs quite well. Numerical results show that a little weight on fairness in the objective could improve the system's fairness significantly with a small efficiency cost. We also conduct numerical experiments to provide further explanations of the trade-off between fairness and efficiency and insights into the initial resource level decision. Our analysis can be fully extended to fill-rate based fairness metric to characterize the optimal allocation policy.
Author: Sheng Hong Publisher: World Scientific ISBN: 9813278625 Category : Business & Economics Languages : en Pages : 440
Book Description
In China, the government controls a large part of resources, such as land, energy, bank savings, and so on. This book studies the efficiency and fairness of resources allocation by governmental administration in China. The book states that it is neither fair nor efficient to allocate resources by the governmental administrations. These resources should be allocated by the market.The book analyzes the resources allocation by government administration in three key areas namely education, health care, and land. A quantitive analysis is developed for describing more precisely the situation of unfairness in fiscal resources allocation. This book also describes how ordinary people address the misposition of resources by governmental administrations by migrating from the provinces with less resources to the provinces with more resources in education or health care. Thus, the book concludes that the actual allocation of resources is determined by the interactions between ordinary people and the government.
Author: Barbara Ann White
Author: Barbara Ann White
Author: Edward E. Zajac
Author: Werner Güth
Author: Arthur M. Okun
Author: Lee Anne Fennell
Author: Anita Gantner
Author: Yuanzheng Ma
Author: 
Author: Sheng Hong
Author: Daniel Friedman