In this volume, some of the world’s finest economists address a theme which is once again at the heart of both economic theory and international economic policy, namely the appropriate role for policy in a market economy. Can Adam Smith’s ‘invisible hand’ mechanism be expected to allocate resources efficiently to meet the needs of society and is the role of government therefore limited at best? The authors draw on recent theoretical advances in the study of imperfect information and strategic behaviour to argue that the models of classical welfare economics are insufficient as a framework for understanding modern market economics. The first two chapters by Joseph Stiglitz and Frank Hahn represent assaults on the fundamental theorems of welfare economics: the notion of pareto-efficiency and the ability of the price mechanism to achieve it. Taking this as their lead, subsequent chapters focus on specific examples of market failure – the environment, the peristence of high levels of unemploement and the strategic behaviour of governments in the making of international economic policy. The book represents a remarkable and accessible insight into the dilemmas of modern economics. It also demonstrates the fundamental role economic analysis has to play in the understanding of real problems and the formulation of appropriate policy. Contributors Partha Dasgupta Cambridge University and Stanford University Frank Hahn Cambridge University Edmond Malinvaud College de France Kenneth Rogoff University of California at Berkeley Andrew A. Stevenson University of Glasgow Joseph E. Stiglitz Stanford University David Vines University of Glasgow
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In this volume, economists address the matter of the role of policy in a market economy. They draw on recent work on imperfect information and strategic behaviour, and argue that the models of classical welfare economics are inadequate for understanding modern market economics.
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Introduction, David Vines and Andrew A. Stevenson; the invisible hand and modern welfare economics, Joseph E. Stiglitz; the welfare economics of market economies, Frank Hahn; the environment as a commodity, Partha Dasgupta; macroeconomics and market failure, Edmond Malinvaud; strategic perspectives on economic policy, Kenneth Rogoff; international policy co-operation, exchange rates and industrial policy, Andrew A. Stevenson and David Vines.
Les mer
In this volume, some of the world’s finest economists address a theme which is once again at the heart of both economic theory and international economic policy, namely the appropriate role for policy in a market economy. Can Adam Smith’s ‘invisible hand’ mechanism be expected to allocate resources efficiently to meet the needs of society and is the role of government therefore limited at best? The authors draw on recent theoretical advances in the study of imperfect information and strategic behaviour to argue that the models of classical welfare economics are insufficient as a framework for understanding modern market economics. The first two chapters by Joseph Stiglitz and Frank Hahn represent assaults on the fundamental theorems of welfare economics: the notion of pareto-efficiency and the ability of the price mechanism to achieve it. Taking this as their lead, subsequent chapters focus on specific examples of market failure – the environment, the peristence of high levels of unemploement and the strategic behaviour of governments in the making of international economic policy. The book represents a remarkable and accessible insight into the dilemmas of modern economics. It also demonstrates the fundamental role economic analysis has to play in the understanding of real problems and the formulation of appropriate policy. Contributors Partha Dasgupta Cambridge University and Stanford University Frank Hahn Cambridge University Edmond Malinvaud College de France Kenneth Rogoff University of California at Berkeley Andrew A. Stevenson University of Glasgow Joseph E. Stiglitz Stanford University David Vines University of Glasgow
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Produktdetaljer

ISBN
9780631176930
Publisert
1991-03-14
Utgiver
Vendor
Wiley-Blackwell
Vekt
369 gr
Høyde
237 mm
Bredde
161 mm
Dybde
19 mm
Aldersnivå
UU, UP, P, 05, 06
Språk
Product language
Engelsk
Format
Product format
Innbundet
Antall sider
184

Biographical note

David Vines is Adam Smith Professor and Andrew Stevenson is senior lecturer in Economics at the University of Glasgow.