Economic efficiency is one of the most important concepts economists use to classify and understand the social world. Unfortunately, it is also one of the most misused. There are two aspects of economic efficiency, the positive and the normative, both of which must be understood in order to apply the concept fruitfully. The former involves analyzing whether a given state of affairs is or is not efficient; the latter involves ascertaining whether a given state of affairs ought to be changed, presumably in favor of a more efficient one. This essay will show how, after going over the positive aspects of efficiency, misunderstanding efficiency results in unjustified normative conclusions wherein efficiency becomes the stated motivation for public policy that (unintentionally) impedes the achievement of other social goods. The essay will conclude by arguing that economists’ misuse of one of their fundamental concepts is a consequence of their misunderstanding the scope of their discipline.
Mais
loading...
What made Buchanan special as an economist?
by Tyler Cowen on January 13, 2013 at 7:58 am in Economics | Permalink
Matt asks this question. I am a bit on the run, so I will do this in link-less form, but all the sources should be...
The 10 Fundamental Principles of Economics:
People respond to incentives.
People face trade offs.
Rational people think within the margin.
Free trade is perceived mutual benefit.
The invisible hand allows for indirect trade.
Coercion magnifies market...
Mais
Brazil
Previous: #98 Serbia
Next: #100 Egypt
overall score57.9
world rank99
Dados cartográficos ©2012 - Termos de Uso
RULE OF LAW
Property Rights50.0
Freedom From Corruption37.0
LIMITED...
São os políticos eficientes?
Eis aqui, finalmente, alguém que aplicou uma idéia antiga: eficiência. Há, claro, o clássico artigo de Weingast, Shepsle & Johnsen sobre isto. Acho até que os autores do índice Econ-E (ver o link abaixo) se inspiraram...
Infra-estrutura básica?
Taí um artigo interessante.
TCS: Tech Central Station - Ideology Is Infrastructure
Trecho: The priority of this deeper infrastructure is obscured by mainstream economic theory. Economic theory often takes for granted...