Premium
DECENTRALIZATION AND INCOME DISTRIBUTION IN SOCIALIST ECONOMIES
Author(s) -
PAZNER ELISHA A.,
SCHMEIDLER DAVID
Publication year - 1978
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1978.tb00286.x
Subject(s) - decentralization , economics , distribution (mathematics) , pareto principle , income distribution , pareto optimal , mechanism (biology) , product (mathematics) , economic system , pareto efficiency , socialist economics , microeconomics , market economy , inequality , multi objective optimization , operations management , mathematical analysis , philosophy , geometry , mathematics , epistemology , machine learning , computer science
Can an informationally decentralized mechanism be designed so as to lead society to a predetermined distribution of income and with the resulting allocation being Pareto optimal? In the present paper this question is answered affirmatively by presenting a decentralized mechanism capable of achieving these objectives. As a by‐product of the analysis the redistributive possibilities arising from the creation of accounting “money” are also brought out.