#paulsamuelson — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #paulsamuelson, aggregated by home.social.
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On a fallacy in the Kaldor-Hicks efficiency-equity analysis
"This paper shows that implicit assumptions about the numeraire good in the #KaldorHicks efficiency-equity analysis involve a “same-yardstick” fallacy (a fallacy pointed out by #PaulSamuelson in another context). These results have negative implications for cost-benefit analysis, the wealth-maximization (e.g., “Chicago”) approach to law and #economics, and other parts of applied #WelfareEconomics"
https://www.ellerman.org/wp-content/uploads/2014/04/Kaldor-Hicks-FallacyReprint.pdf