PHIL 237 Lecture Notes - Lecture 26: Kelvin Lancaster, Richard Lipsey, Perfect Competition
21 Mar 2016
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Criticism: large cake vs. smaller cake divided equally, or the efficiency/equality conflict. Reply: a cake divided more equally may also be larger. There is a complementarity between efficiency and equality. Markets are the only efficiency under a series of conditions: households and firms have to act perfectly competitively (taking prices and wages as given. Imposing more regulation may make market outcomes closer to their ideal outcomes. A theoretical examination of the possible impacts of the proposals. E. g. , increase minimum wage, employment insurance, and pensions. An investigation of the empirical evidence on how comparable measures work in reality . Average annual growth diagram** (on mycourses or atkinson"s book) If more inequality would translate into a bigger pie, there would be a pattern on the graph there should be an obvious trend line; yet, there isn"t. Shows that there is no correlation between increase inequality and increase productivity. Discussion: the case of canada: probably too much inequality already.
