Bailouts, Opportunity Cost and Utilitarian Ethics: A Law & Economics Analysis

2014 ◽  
Author(s):  
Robert W. McGee
Keyword(s):  
Opportunity Cost ◽  
Economics Analysis

Migration vs. development? The case of poverty and inequality in Mexico

2012 ◽  
Vol 9 (1) ◽  
pp. 65-74 ◽  
Author(s):  
Agustín Escobar Latapi
Keyword(s):  
Latin America ◽  
International Migration ◽  
Latin American ◽  
Opportunity Cost ◽  
Inequality Index ◽  
Poverty And Inequality ◽  
And Migration

Although the migration – development nexus is widely recognized as a complex one, it is generally thought that there is a relationship between poverty and emigration, and that remittances lessen inequality. On the basis of Latin American and Mexican data, this chapter intends to show that for Mexico, the exchange of migrants for remittances is among the lowest in Latin America, that extreme poor Mexicans don't migrate although the moderately poor do, that remittances have a small, non-significant impact on the most widely used inequality index of all households and a very large one on the inequality index of remittance-receiving households, and finally that, to Mexican households, the opportunity cost of international migration is higher than remittance income. In summary, there is a relationship between poverty and migration (and vice versa), but this relationship is far from linear, and in some respects may be a perverse one for Mexico and for Mexican households.

On Measuring the Social Opportunity Cost of Labour in the Presence of Tariffs and an Informal Sector (The Distinguishedl Lecture)

1992 ◽  
Vol 31 (4I) ◽  
pp. 535-564 ◽  
Author(s):  
M. Ali Khan
Keyword(s):  
Informal Sector ◽  
Opportunity Cost ◽  
Costs And Benefits ◽  
Open Letter ◽  
Review Of The Literature ◽  
The Social ◽  
Action Project ◽  
Relevant Group ◽  
Net Benefits ◽  
The Individual

Harberger introduced his influential 1971 essay with the following words. This paper is intended not as a scientific study, nor as a review of the literature, but rather as a tract - an open letter to the profession, as it were - pleading that three basic postulates be accepted as providing a conventional framework for applied welfare economics. The postulates are: (a) The competitive demand price for a given unit measures the value of that unit to the demander; (b) The competitive supply price for a given unit measures the value of that unit to the supplier; and (c) When evaluating the net benefits or costs of a given action (project, programme, or policy), the costs and benefits accruing to each member of the relevant group (e.g., a nation) should normally be added without regard to the individual(s) to whom they accrue.

Welfare tradeoff psychology is present in children and adults

2018 ◽  
Author(s):  
Rhea M Howard ◽  
Annie C. Spokes ◽  
Samuel A Mehr ◽  
Max Krasnow
Keyword(s):  
Social Networks ◽  
Social Context ◽  
Opportunity Cost ◽  
Trade Off ◽  
Contextual Features ◽  
Limited Experience ◽  
The Individual

Making decisions in a social context often requires weighing one's own wants against the needs and preferences of others. Adults are adept at incorporating multiple contextual features when deciding how to trade off their welfare against another. For example, they are more willing to forgo a resource to benefit friends over strangers (a feature of the individual) or when the opportunity cost of giving up the resource is low (a feature of the situation). When does this capacity emerge in development? In Experiment 1 (N = 208), we assessed the decisions of 4- to 10-year-old children in a picture-based resource tradeoff task to test two questions: (1) When making repeated decisions to either benefit themselves or benefit another person, are children’s choices internally consistent with a particular valuation of that individual? (2) Do children value friends more highly than strangers and enemies? We find that children demonstrate consistent person-specific welfare valuations and value friends more highly than strangers and enemies. In Experiment 2 (N = 200), we tested adults using the same pictorial method. The pattern of results successfully replicated, but adults’ decisions were more consistent than children’s and they expressed more extreme valuations: relative to the children, they valued friends more and valued enemies less. We conclude that despite children’s limited experience allocating resources and navigating complex social networks, they behave like adults in that they reference a stable person-specific valuation when deciding whether to benefit themselves or another and that this rule is modulated by the child’s relationship with the target.

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