Autori
Hammond, Peter J.
Sempere, Jaime

Titolo
Limits to the potential gains from market integration and other supply-side policies
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1992 - Fascicolo: 79 - Pagina iniziale: 1 - Pagina finale: 34

Classical welfare economics demonstrates potential Pareto improvements from “supply-side” policy changes that increase the efficiency of aggregate production. Special cases reviewed here concern market integration in customs unions and the gains from international trade. These classical results rely on incentive incompatible lump-sum compensation of losers. Some extensions to second-best welfare economics are presented. They require that governments freeze most of the parameters of each consumer’s budget set, leaving flexible producer prices to clear markets, and uniform poll subsidies to generate actual Pareto improvements. Generally, supply-side reforms are only beneficial when combined with other suitable policies to compensate deserving losers.



Testo completo: http://hdl.handle.net/1814/430

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