Economic Theory and Urban Planning

1975 ◽  
Vol 7 (5) ◽  
pp. 497-508 ◽  
Author(s):  
M J Oxley
Keyword(s):  
Economic Theory ◽  
Urban Planning ◽  
Theoretical Basis ◽  
Market Failure ◽  
Welfare Economics ◽  
Perfect Competition

The lack of a theoretical basis for urban planning is stressed. It is suggested that welfare economics could provide the means for analysing the problems and a framework for developing alternative courses of action. This is achieved by examining the concept of welfare optimisation, the optimality of perfect competition, and the nature of market failure.

scholarly journals Una crítica a la teoría de los fallos del mercado desde la perspectiva de la Escuela Austriaca

2021 ◽  
pp. 133-159
Author(s):  
Ángel Martín Oro
Keyword(s):  
Public Goods ◽  
Imperfect Competition ◽  
Market Failure ◽  
Welfare Economics ◽  
Perfect Competition ◽  
Market Failures ◽  
Failure Theory ◽  
Palabras Clave ◽  
Competitive Model ◽  
Main Criticism

In this paper, we present a critical analysis of the standard market failure theory, one of the most important pillars of economic interventionism. This theory justifies state interference when markets do not produce so-called optimal outcomes; being based on two fundamental concepts of neoclassical welfare economics, namely, Pareto efficiency and perfect competition. The main criticism is directed at the theoretical framework in which is based on, through the contributions of the Austrian School of Economics. To accomplish that, after revising the basics of the market failure theory, we will put forward an alternative concept of efficiency, as well as questioning the suitability of the perfect competitive model. Next, we will reconsider theoretically the traditional market failures, that is, monopolies, public goods and externalities’ problems. This analysis is accompanied by historical cases that illustrate our criticism. Key words: Market failure, welfare economics, efficiency, imperfect competition, public goods, externalities. JEL codes: B53, D60, H00. Resumen: En este trabajo se realiza un análisis crítico de la teoría tradicional de los fallos del mercado, uno de los pilares más importantes del intervencionismo económico. Esta teoría vendría a justificar la interferencia estatal en los casos en que el mercado no produce resultados óptimos; estando apoyada en dos conceptos fundamentales en la economía del bienestar neoclásica: la eficiencia paretiana y el modelo de competencia perfecta. La principal crítica se realizará al marco teórico en el que se inserta, a partir de las aportaciones de la Escuela Austriaca de Economía. Para ello, tras describir a grandes rasgos la teoría de los fallos del mercado, expondremos un concepto alternativo de eficiencia, y nos cuestionaremos la validez teórica del modelo perfectamente competitivo. A continuación, reconsideraremos desde un punto de vista teórico los fallos del mercado tradicionales, esto es: monopolios, bienes públicos y externalidades. Este análisis se acompañará de casos históricos que ilustren y apoyen nuestra crítica. Palabras clave: Fallos del mercado, economía del bienestar, eficiencia, competencia imperfecta, bienes públicos, externalidades. Códigos JEL: B53, D60, H00.

scholarly journals Os Objetivos do Direito da Concorrência em Face da Ordem Econômica Nacional

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Luiz Carlos Buchain
Keyword(s):  
Economic Freedom ◽  
Market Failure ◽  
Market Competition ◽  
State Intervention ◽  
Perfect Competition ◽  
Economic Order ◽  
Economic Power ◽  
Free Enterprise ◽  
The World ◽  
Object Of Study

OS OBJETIVOS DO DIREITO DA CONCORRÊNCIA EM FACE DA ORDEM ECONÔMICA NACIONAL THE OBJECTIVES OF COMPETITION LAW REGARDING NATIONAL ECONOMIC ORDER Luiz Carlos Buchain RESUMO: A Constituição Federal brasileira, ao adotar o princípio da livre iniciativa para a Ordem Econômica, também acatou a liberdade de empresa como fundamento destinado a estabelecer a ampla concorrência de mercado entre agentes econômicos. Entretanto, como demonstra a história econômica, a liberdade econômica traz em si a concentração de poder econômico nas mãos de determinadas empresas (ou grupo). Tal concentração de poder é considerada uma das falhas de mercado porque possibilita ao seu detentor adotar determinados comportamentos prejudiciais à concorrência, os quais não seriam factíveis na ausência desse poder. Por isso mesmo, a concentração e o poder econômico passaram a ser objeto de estudos jurídicos e econômicos baseados na premissa de que a preservação da livre concorrência é um pressuposto ao desenvolvimento da economia e garantia da livre iniciativa. O direito econômico reconhece que a livre iniciativa, isoladamente considerada, não garante a manutenção da liberdade econômica ou o modelo de competição perfeita no mundo fático, ou seja, os modelos econômicos estão sujeitos a falhas estruturais cuja correção justifica a intervenção do Estado na economia. Neste artigo, abordamos as diversas correntes que defendem ou condenam a intervenção do estado na economia e sua regulação, em variados graus. A intervenção do Estado na economia tornou-se objeto de estudo e matéria legislativa em todo o mundo, seja na ordem legislativa interna, seja na esfera do direito público internacional, donde se destaca a Organização Mundial do Comércio – OMC e a Organização para a Cooperação e Desenvolvimento Econômico – OCDE. PALAVRAS-CHAVE: Concorrência; Objetivos; Livre iniciativa; Regulação. ABSTRACT: The Brazilian Federal Constitution, once it adopted the principle of free enterprise for its economic order, also accepted the freedom to conduct a business as the basis for the establishment of the broader market competition among economic agents. However, as economic history shows, economic freedom brings with itself concentration of economic power in the hands of certain companies (or group of companies). Such a concentration of power is reputed a market failure derives because it enables such companies to adopt certain behaviors considered harmful to competition, which would not be feasible without such power. Therefore, concentration and economic power have become object of study of law and economics based on the premise that the preservation of free competition is an assumption for the economic development and guarantee of free enterprise. Economic law recognizes as a fact that free enterprise, taken in isolation, does not guarantee the sustenance of economic freedom or the model of perfect competition in the factual world; in other words, economic models are subject to structural failures whose correction justifies state intervention in economy. In this paper we discuss the various currents that advocate or condemn state intervention in the economy and its regulation, in varying degrees. State intervention in the economy has become the object of study and legislative matters in the world, whether in the internal legislative order or in the sphere of public international law, where stands the World Trade Organization – WTO and the Organization for Economic Co-operation and Development - OECD.KEYWORDS: Competition; Objectives; Free enterprise; Regulation. SUMÁRIO: Introdução. 1. O direito da concorrência e as políticas públicas. 1.1. Principais objetivos da política de concorrência. 1.2. Objetivos complementares da política de concorrência. 2. Interface entre política de concorrência e outras políticas públicas. 2.1. Possíveis conflitos entre múltiplos objetivos. 2.2. Instrumentos da política de concorrência. Considerações finais. Referências.

scholarly journals ECONOMIA MATEMATICA E MECCANICA RAZIONALE

2013 ◽  
pp. 57-72
Author(s):  
PierCarlo Nicola
Keyword(s):  
Economic Theory ◽  
General Equilibrium ◽  
Incomplete Markets ◽  
Monopolistic Competition ◽  
Perfect Competition ◽  
Economic Data ◽  
Equilibrium Models ◽  
Subjective Expectations ◽  
General Equilibrium Models ◽  
Relevant Role

Riassunto. – Almeno a partire da Pareto le analogie meccaniche hanno giocato un ruolo rilevante nella teoria economica; ma sarebbe ingiusto passare sotto silenzio il fatto che Marshall, praticamente coetaneo di Pareto, propendeva piuttosto per l’impiego di analogie di natura biologica. Questo detto, l’equilibrio generale, attualmente il paradigma più diffuso fra i cultori di teoria economica, si presta mirabilmente a sottolineare le analogie meccaniche proponibili nella teoria economica. Partendo dalla formulazione canonica dell’equilibrio generale concorrenziale, come venne proposta da Arrow e Debreu nel 1954, l’intervento si propone di presentare succintamente alcune delle estensioni formulate nel corso degli ultimi 50 anni:– l’introduzione dei monopoli e della concorrenza monopolistica;– i prezzi rigidi e il razionamento;– le generazioni sovrapposte;– gli equilibri temporanei e le aspettative soggettive;– gli equilibri approssimati in presenza di non convessità; – l’infinità degli agenti e la concorrenza perfetta;– l’incertezza;– i mercati incompleti e le attività finanziarie.Vengono brevemente discussi anche i problemi che sorgono nell’applicazione di modelli di equilibrio generale allo studio di economie concrete, e si sottolinea il fatto che i dati economici sono sempre soggetti ad errori spesso rilevanti, mentre quasi mai é possibile condurre esperimenti controllabili, diversamente da quanto avviene nella fisica. Le applicazioni portano naturalmente a chiedersi quale utilità possono rivestire i modelli di equilibrio generale a fini previsionali.***Abstract. – Since Pareto times mechanical analogies played a relevant role in economic theory; but it is necessary to underline that Marshall, an economist contemporary to Pareto, preferred to employ biological analogies. General equilibrium, presently the mainstream paradigm in economic theory, lends itself very naturally to underline mechanical analogies permeating economic theory. Starting from the canonical formulation of general equilibrium, as proposed by Arrow and Debreu in 1954, our aim is to briefly recall some extensions made during the last 50 years:– the inclusion of monopolies and monopolistic competition;– sticky prices and rationing;– overlapping generations;– temporary equilibrium and subjective expectations;– approssimate equilibria under non convexities;– infinity of agents and perfect competition;– uncertainty;– incomplete markets and financial activities.We discuss also some problems which are present in applying general equilibrium models to our days economies, and we underline the fact that economic data are always affected by errors, while very rarely it is possible to do controlled experiments, contrary to what happens in physics. Therefore, it is natural to ask which is the utility of general equilibrium models as far as forecasting activities are of interest.

scholarly journals Free Riding without Dead Weight Losses

2019 ◽  
Vol 11 (19) ◽  
pp. 5168
Author(s):  
Kwon-Sik Kim ◽  
Seong-ho Jeong
Keyword(s):  
Economic Theory ◽  
Weight Loss ◽  
Public Goods ◽  
Market Failure ◽  
Consumer Surplus ◽  
Free Riding ◽  
Policy Implications ◽  
Dead Weight ◽  
Policy Choices ◽  
Weight Losses

Traditional economic theory assumes that dead weight loss due to free riding on public goods is inevitable. This study demonstrates that free riding without dead weight losses can theoretically exist through Bowen’s model. To this end, this study uses the consumer surplus analysis to present the conditions for free-riding that do not involve dead weight losses, as well as to demonstrate that policy choices that satisfy both the value of efficiency and equity in the supply of public goods are possible. This article formularizes the conditions under which such exceptional cases occur and examines what policy implications the presence of such conditions have in making decisions about the provision of public goods. The discussion of possibility and conditions for free-riding without dead weight losses is significant in that it suggests theoretical and policy implications for policies to raise equity as another important value, not just providing a solution to market failure.

Reconciling Normative and Behavioral Economics: An Application of the “Naturalistic Approach” to the Adaptation Problem

2014 ◽  
Vol 234 (2-3) ◽  
Author(s):  
Christian Schubert ◽  
Martin Binder
Keyword(s):  
Economic Theory ◽  
Well Being ◽  
Welfare Economics ◽  
Preference Formation ◽  
Individual Preferences ◽  
Opportunity Sets ◽  
The Individual ◽  
High Level ◽  
Adaptive Preference ◽  
Vexing Problem

SummaryWhile standard economic theory takes individual preferences as stable and “given”, i.e., independent of situational context, real-world preferences tend to vary with changing opportunity sets. This is exemplified by Aesop’s fable of the fox and the sour grapes. This phenomenon of “adaptive preference formation” poses a vexing problem for normative economics: preferences which constitute the measuring rod for welfare are in turn shaped by the (economic) situation of the individual, leading to problems epitomized by Amartya Sen’s “hopeless beggar” dilemma: The beggar, enduring objectively miserable circumstances, nonetheless claims to have all his preferences satisfied, which would lead orthodox welfare economics to establish a high level of well-being. For those who find this counterintuitive, different solutions for the “adaptation problem” have been proposed in the literature, typically centering on highly demanding rationality and information requirements. We argue that, in order to cope with this and related problems of preference endogeneity, welfare economics rather needs to account for recent psychological insights into the mechanisms that drive preference formation and change. We then use these insights to suggest and apply a procedural criterion of autonomous preference formation.

Symposium on Amartya Sen's philosophy: 2 Unstrapping the straitjacket of ‘preference’: a comment on Amartya Sen's contributions to philosophy and economics

2001 ◽  
Vol 17 (1) ◽  
pp. 21-38 ◽  
Author(s):  
Elizabeth Anderson
Keyword(s):  
Economic Theory ◽  
Social Welfare ◽  
Welfare Economics ◽  
Individual Behavior ◽  
Microeconomic Theory ◽  
Individual Preferences ◽  
Individual Welfare ◽  
Philosophy And Economics

The concept of preference dominates economic theory today. It performs a triple duty for economists, grounding their theories of individual behavior, welfare, and rationality. Microeconomic theory assumes that individuals act so as to maximize their utility – that is, to maximize the degree to which their preferences are satisfied. Welfare economics defines individual welfare in terms of preference satisfaction or utility, and social welfare as a function of individual preferences. Finally, economists assume that the rational act is the act that maximally satisfies an individual's preferences. The habit of framing problems in terms of the concept of preference is now so entrenched that economists rarely entertain alternatives.

scholarly journals The Sociodemographic Aspect of Sustainable Development Formation of the Agroindustrial Complex in the Far Eastern Federal District

2021 ◽  
Vol 937 (3) ◽  
pp. 032109
Author(s):  
N Pastukhova ◽  
E Emelyanova ◽  
A Nishchev
Keyword(s):  
Economic Theory ◽  
Sustainable Development ◽  
Theoretical Basis ◽  
Federal District ◽  
Regional Features ◽  
Regional Factors ◽  
The Common ◽  
Agroindustrial Complex ◽  
Far Eastern

Abstract The article describes the sociodemographic aspect of sustainable development formation of the agroindustrial complex, consistent with the regional features. The methodological and theoretical basis of this publication is the works of economic theory founders and the works of domestic and foreign scientists on the problems of the sociodemographic aspect of sustainable development formation of the agroindustrial sector. The methodology based on the revealing and studying the problems of the sociodemographic aspect of sustainable development of the agroindustrial complex and the common and regional factors of sustainable development of the agroindustrial complex. Used methods: analysis, synthesis, monographical, analytical, abstract-logical, calculation and constructive, economic and statistical, economic and mathematical, sociologial, expert.

scholarly journals ECONOMIC EQUILIBRIUM AND MONETARY POLICY

2019 ◽  
Vol 1 (7) ◽  
pp. 152-156 ◽  
Author(s):  
V. Krilov
Keyword(s):  
Monetary Policy ◽  
Theoretical Basis ◽  
Market Failure ◽  
Inflation Targeting ◽  
The State ◽  
Reference Points ◽  
Economic Equilibrium ◽  
Flexible Approach ◽  
Hybrid Forms

The problem of economic equilibrium as a theoretical basis of monetary policy has been considered. It has been noted, that it is necessary to take into account the state of imbalance in the economy and the factors of market failure. The conclusion has been made, that it is important to focus on hybrid forms of monetary policy, which means the use of different combinations of target reference points. The need is implied from this for a more flexible approach to the formation of modern policy of the Bank of Russia, which would not absolutize the regime of inflation targeting.

The Early Mathematics of Welfare

2020 ◽  
Vol 52 (4) ◽  
pp. 683-707
Author(s):  
Mario Pomini
Keyword(s):  
Economic Theory ◽  
Social Welfare ◽  
Social Welfare Function ◽  
Welfare Economics ◽  
Economic Planning ◽  
Mathematical Tool ◽  
Early Mathematics ◽  
Subjective Theory ◽  
De Finetti ◽  
Laissez Faire

Bruno de Finetti (1906–1985) is well known as the founder of the subjective theory of probability. Less known is his contribution to economic theory. The article presents the contributions of de Finetti in the field of welfare economics. He advanced a new mathematical tool: the theory of simultaneous maxima. On this base, he criticized the laissez-faire interpretation of the Paretian theory and advanced the idea of a social welfare function, reflecting the debate on economic planning among Italian corporatist economists.

Sign in / Sign up

Export Citation Format

Share Document