Tuesday, December 10, 2013

Rumplestatskin — What Equality-Efficiency Trade-Off


Important for policy considerations like BIG, JG, progressive taxation, etc. relative to economic efficiency, productivity, innovation, etc. 

The embedded links are important, too. The concept of the equality-efficiency tradeoff stems from Arthur Okun's book. Turns out it is an illusory tradeoff, disconfirmed empirically and theoretically — a figment of the neoclassical model.

Naked Capitalism
What Equality-Efficiency Trade-Off?
Rumplestatskin

1 comment:

Unknown said...

The common stock of all large corporations could be equally redistributed to the entire population and it should not adversely affect their operations at all. Indeed, profits might easily go up because of a more motivated, less demoralized workforce.

The why aren't large corporations very broadly owned? Answer: Because why share when one can legally steal via a government-enabled credit cartel?