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relationship between unanimity and efficiency

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relationship between unanimity and efficiency

Abgeschickt von student am 18.month_may.2011 19:07
reviewing the tutorial slides i got a little confused because the notes differ from what i remember from the discussion during the last tutorial. question: can we say "unanimity must lead to an efficient outcome" or "for an outcome to be efficient it must be reached by unanimity" that is "unanimity can (but not must) lead to an efficient outcome"

Re: relationship between unanimity and efficiency

Abgeschickt von swolf am 21.month_may.2011 14:42

your last interpretion is right. I'll say a few words on this in the next tutorial again, to make the point clearer. But so far:

if there's unanimous agreement on a move from situation A to B, you know that this is a Pareto-improvement. Whether B is a Pareto-Optimum is not yet clear: only if there's no alternative (e.g. C) to be reached by additional Pareto-improvements, you are sure to be at a Pareto-efficient point. Unanimity ensures that we don't run into Pareto-inferior situation w.r.t. status quo, but it is not a sufficient criterion for arriving at a Pareto-Optimum.

Re: relationship between unanimity and efficiency

Abgeschickt von student am 25.month_may.2011 13:25
I had a question which is a bit similar to the previous one. If unanimity is the criteria of efficiency, then how are the existing constitutions evaluated for efficiency?

Re: relationship between unanimity and efficiency

Abgeschickt von swolf am 26.month_may.2011 19:40

good question!

there's two main possibilities: checking if such rules could have been consented to under some form of veil --> hypothetical contract

or: we believe, like Hayek, in the survival of the best (efficient) norms by evolutionary approaches

additionally, one can at least argue if there's not way of reforming the actual constitution with unanimous change, than Buchanan's check for constitutional efficiency means that it is efficient. that's discussed in the lecture, too

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