…argue that the simultaneous existence of imperfect capital markets and problematic contract enforcement create conditions in which a non-monetized transaction is Pareto improving relative to the most likely alternative, which…

…anything less penurious would make France worse off, and therefore not be even weakly Pareto-optimal. Which is where we turn this into an economics post. Because there is a way…

…Even if we were ignoring that Health Insurance is NOT HEALTH CARE,*** John McCain’s proposal, by the admission of his own Economic Advisor, makes the current situation appear Pareto-optimal. Which…

…first equilibrium is Pareto inferior to the second and we seem to be in it. So what is to be done ? I don’t think that eliminating capital controls or…

…conventional tax returns in the 1980s and 1990s. The notion that governments could raise more money by cutting rates is, indeed, a glorious idea. It would permit a Pareto improvement…

…spillovers are an externality, so the market outcome is not Pareto efficient. Marshallian spillovers provide a justification for infant industry protection. Krugman’s work on economic geography strongly strongly supports the…

…employer’s money don’t either*. The vast majority of the supposedly rational agents think you are full of it. You argue that they understand the economy (needed for Pareto efficiency) and…

…Pareto efficient. 4) Persistent fluctuations due to aggregate demand were renamed “hysteresis” by Blanchard and Summers in 1986. European data already massively rejected the not yet developed old new Keynesian…

Be my valentine     More below the fold Pareto et. al….

…interest rate implies that private investment is Pareto inefficiently high (there is dynamic inconsistency). I also present an alternative model in which the crowding out causes a transfer to current…