Distributive Justice and the Rules of the Corporation: Partial Versus General Equilibrium Analysis

2005 ◽  
Vol 15 (3) ◽  
pp. 355-362 ◽  
Author(s):  
John H. Beck
Keyword(s):  
Economic Analysis ◽  
Distributive Justice ◽  
General Equilibrium ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
Small State ◽  
General Equilibrium Analysis ◽  
Long Run ◽  
Large Sector ◽  
Partial Equilibrium Analysis

Abstract:Progressives have advocated reforms of rules governing corporations to achieve greater distributive justice, but Maitland (2001) has argued that corporate rules are distributively neutral and that changing the rules will have no long run impact on distributive justice. These different conclusions stem from the use of two different methods of economic analysis, partial equilibrium and general equilibrium models. A change in the rules governing corporations in a “large” sector of the economy is appropriately analyzed using a general equilibrium analysis, supporting the conclusion that changes in the rules may affect distributive justice in the long run. However, a partial equilibrium analysis of a change in the rules of corporations affecting a “small” part of the economy such as a single firm or even all firms in a small state supports the claim that such changes cannot affect distributive justice.

Keynes and the Marshall-Walras Divide

1999 ◽  
Vol 21 (2) ◽  
pp. 117-136 ◽  
Author(s):  
Michel De Vroey
Keyword(s):  
General Equilibrium ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
General Equilibrium Analysis ◽  
Preliminary Step ◽  
Second Stage ◽  
Keynesian Theory ◽  
Research Programs ◽  
Partial Equilibrium Analysis ◽  
The Relationship

This paper is a sequel to De Vroey (1998d) and (1998e). In these papers, I pondered upon the relationship between the Marshallian and the Walrasian research programs and defended the view that a divide should be drawn between them, contrary to the opinion of the majority of economists who see no need for such. I argued that these research programs differ on two scores. First, they are based on different conceptions of equilibrium. Second, they differ on the way in which they broach the issue of the working of the decentralized economy. The hallmark of the Marshallian approach is that it proceeds in two steps. The working of particular markets is analyzed in a first stage whereas the issue of their coordination is assigned to the second stage of the inquiry. Contrarily, the hallmark of the Walrasian approach is to immediately start the analysis at the level of the economy as a whole. Put differently, in the Marshallian approach, partial equilibrium analysis is seen as a first preliminary step to general equilibrium analysis, whereas in the Walrasian approach one immediately proceeds with the latter. The aim of the present paper is to show the incidence of this twofold difference on the interpretation of Keynesian theory.

scholarly journals The U.S. Tobacco Buyout: A Partial and General Equilibrium Analysis

2013 ◽  
Vol 45 (3) ◽  
pp. 411-419 ◽  
Author(s):  
Andrew Schmitz ◽  
D.J. Haynes ◽  
Troy G. Schmitz ◽  
Evan D. Schmitz
Keyword(s):  
General Equilibrium ◽  
Healthcare Costs ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
Worker Productivity ◽  
General Equilibrium Analysis ◽  
Quit Smoking ◽  
General Welfare ◽  
The Impact ◽  
The U.S

This article analyzes the impact of removing the U.S. tobacco program in both a partial and general welfare economics framework. In a partial-equilibrium framework, a consumer tax-funded quota buyout can result in producer gains, consumer losses, net losses resulting from higher prices, and deadweight losses. In a general-equilibrium framework, society can gain from the buyout resulting from considerable potential savings from reduced healthcare costs attributable to a reduction in smoking. Additionally, we present a model that addresses the addictive qualities of tobacco while considering the effects of the quota buyout. We also conclude that another possible effect of the buyout is an increase in worker productivity because employees who are able to quit smoking reduce the amount of smoking-related sick days taken.

Macro/Micro Modelling and Gini Multi-Decomposition: An Application to the Philippines

2010 ◽  
Author(s):  
Stéphane Mussard ◽  
Luc Savard
Keyword(s):  
General Equilibrium ◽  
The Philippines ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
Economic Modelling ◽  
Policy Reforms ◽  
Policy Makers ◽  
Partial Equilibrium Analysis ◽  
General Equilibrium Effect ◽  
Equilibrium Effect

Macro/micro-economic modelling has emerged as a rigorous instrument to link policy reforms with changes in income distribution. Indeed, this approach enables one to capture directly the general equilibrium effect of policy reforms upon changes in household welfare. These endogenous distributions combined with the Gini multi-decomposition provide powerful and detailed information for policy-makers interested in the trade-off between inequality and the efficient impact of reforms. Our results show that including the general equilibrium effect can yield results that differ from those of partial equilibrium analysis.

North–South trade and standards: what can general equilibrium analysis tell us?

2012 ◽  
Vol 11 (3) ◽  
pp. 376-389 ◽  
Author(s):  
IAN SHELDON
Keyword(s):  
International Trade ◽  
Economic Analysis ◽  
General Equilibrium ◽  
Environmental Economics ◽  
Theoretical Foundation ◽  
Equilibrium Analysis ◽  
Market Failures ◽  
Negative Externalities ◽  
General Equilibrium Analysis ◽  
Aid For Trade

AbstractThe tension between standards being a response to market failures versus creating barriers to trade characterizes much of their economic analysis. This article explores in more detail the link between international trade and standards based on resolution of a public bad(s) problem. Specifically, a general equilibrium setting is sketched out, drawing on existing analysis in the trade and environmental economics literature, and designed to capture some key stylized facts and basic hypotheses concerning North–South trade where standards are targeted at negative externalities in production. The key conclusions to be drawn are that while a clear theoretical foundation exists for the hypothesis of ‘standards as barriers’ to trade, and the likely benefits of aid for trade programs, this is not the case for the hypothesis of ‘barriers as a catalyst’ for trade, pointing to the need for further research on the latter hypothesis.

The competitive firm and perfect competition

2020 ◽  
pp. 263-298
Author(s):  
David M. Kreps
Keyword(s):  
General Equilibrium ◽  
Equilibrium Analysis ◽  
Perfect Competition ◽  
Partial Equilibrium ◽  
Competitive Firm ◽  
Partial Equilibrium Analysis ◽  
Production Plans ◽  
Market Equilibria ◽  
As If

This chapter addresses market equilibria for competitive firms, firms that act as price takers. It develops a theory which is based on the hypothesis that firms and consumers act as if they have no effect on prices; consumers choose what to consume and firms choose their production plans in the belief that the prices they see are unaffected by their decisions. There are two ways to proceed in the theory. One could continue analysis of general equilibrium in the style of Chapter 6, but with firms added to the story. Or one can undertake partial equilibrium analysis. The chapter begins with the classic partial equilibrium analysis of perfect competition. It then develops an example that shows how a partial equilibrium perspective can be misleading, before discussing general equilibrium with firms.

scholarly journals AN ECONOMIC ANALYSIS OF GOVERNMENT INTERVENTION MEASURES IN THE COCONUT INDUSTRY OF SRI LANKA

CORD ◽  
2020 ◽  
Vol 1 (01) ◽  
pp. 34
Author(s):  
H W S de Silva
Keyword(s):  
Sri Lanka ◽  
Economic Analysis ◽  
Government Intervention ◽  
Public Investment ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
Extension Services ◽  
Intervention Measures ◽  
Partial Equilibrium Analysis

The apparent objectives of the govemment intervention measures in the coconut industry are identified and ranked. The inadequacy of data prevents estimation of basic coefficients re­quired for the analysis. The partial equilibrium‑analysis based on “a prior' expectations shows that the opportunities available to im­prove the tenns of trade in desiccated coconut and edible copra exports justify government intervention in these two products in the foriu of export duties. There may also be some justification for expanding extension services and public investment on coco­nut researeh, which enables to realise the production objective of government. The implications of the study crucially depend on the assumptions and the partial equilibrium technique used.

Sign in / Sign up

Export Citation Format

Share Document