An adverse social welfare effect of a doubly gainful trade

Arbeitspapier

Acknowledging individuals’ distaste for low relative income renders trade less appealing when trade is viewed as a technology that integrates economies by merging separate social spheres into one. We define a “trembling trade” as a situation in which gains from trade are overtaken by losses of relative income, with the result that global social welfare is reduced. A constructive example reveals that a “trembling trade” can arise even when trade is doubly gainful in that it increases the income of every individual and narrows the income gap between the trading populations.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEF Discussion Papers on Development Policy ; No. 260

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Size and Spatial Distributions of Regional Economic Activity
• Thema: Gains from trade ; Increase of incomes ; Decrease of income gap ; Integration ; Change of social space ; Low relative income ; Social welfare

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Stark, Oded ; Zawojska, Ewa ; Kohler, Wilhelm ; Szczygielski, Krzysztof
• Ereignis: Veröffentlichung
• (wer): University of Bonn, Center for Development Research (ZEF)
• (wo): Bonn
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/191779
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ