In economics, the theory of the second best concerns the situation when one or more optimality conditions cannot be satisfied.
The economists Richard Lipsey and Kelvin Lancaster showed in 1956, that if one optimality condition in an economic model cannot be satisfied, it is possible that the next-best solution involves changing other variables away from the values that would otherwise be optimal.
Politically, the theory implies that if it is infeasible to remove a particular market distortion, introducing a second (or more) market distortion may partially counteract the first, and lead to a more efficient outcome.
In economics, the theory of the second best concerns the situation when one or more optimality conditions cannot be satisfied.
The economists Richard Lipsey and Kelvin Lancaster showed in 1956, that if one optimality condition in an economic model cannot be satisfied, it is possible that the next-best solution involves changing other variables away from the values that would otherwise be optimal.
Politically, the theory implies that if it is infeasible to remove a particular market distortion, introducing a second (or more) market distortion may partially counteract the first, and lead to a more efficient outcome.
The Kaldor-Hicks Compensation Principle was given by British Economists Nicholas Kaldor And Noble laureate John Hicks. Both are famous for giving their contribution to economic concepts in the existing knowledge of literature.
Neo classical general equilibrium theory which is based on Walrasian theory of general equilibrium 2*2*2 model and Marshallian graphical representation
Prof. Joan Robinson, criticised Neo Classical theory of capital and its concept of capital. Following in the Keynesian tradition, she extended Harrod's and Domar's growth models to include other variables that determine steady growth in a capitalist economy. However she states that the Golden Age is a myth, not achievable in reality.
Throughout the paper, the definition of both inflation and deflation has been discussed from the Russia-Ukraine's combat's perspective, on the other hand, from the point of view of the massive IT Companies' cutting of employees, the definition of deflation has been discussed. Which kinds of negative effects are falling into the world's economy ,all of them have been discussed throughout the paper.
The Kaldor-Hicks Compensation Principle was given by British Economists Nicholas Kaldor And Noble laureate John Hicks. Both are famous for giving their contribution to economic concepts in the existing knowledge of literature.
Neo classical general equilibrium theory which is based on Walrasian theory of general equilibrium 2*2*2 model and Marshallian graphical representation
Prof. Joan Robinson, criticised Neo Classical theory of capital and its concept of capital. Following in the Keynesian tradition, she extended Harrod's and Domar's growth models to include other variables that determine steady growth in a capitalist economy. However she states that the Golden Age is a myth, not achievable in reality.
Throughout the paper, the definition of both inflation and deflation has been discussed from the Russia-Ukraine's combat's perspective, on the other hand, from the point of view of the massive IT Companies' cutting of employees, the definition of deflation has been discussed. Which kinds of negative effects are falling into the world's economy ,all of them have been discussed throughout the paper.
Current Account Influences and Impacts content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics
Factors Influencing the Current Account
Impacts of Current Account Deficits
A2 Macro: Balance of Payments and Exchange Ratestutor2u
All exam boards require candidates to have an understanding of the Balance of Payments and Exchange Rates. In this session we will focus on the causes of the UK’s Balance of Trade (aka Current Account) deficit, what we can do about it, and how an exchange rate depreciation
should affect an economy, and has affected the UK post financial crisis.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
2. Prebisch-Singer Thesis
In May 1950, “The Economic Development of Latin America & its Principal
Problems” by Raul Prebisch, appeared under the UN’s imprint.
In the same month Hans Singer published an article, “The Distribution of Gain
between Investing & Borrowing Countries” in the American Economic Review.
3. Prebisch-Singer Thesis
A common explanation for this is, that manufactured goods have a greater
income elasticity of demand than Primary products, especially food.
Therefore, as income rise, the demand for manufactured goods increase
rapidly more than demand for primary products.
What is Primary Products and Goods?
Raw Materials
4. Prebisch-Singer Thesis
“On the basis of exports statistics concerning United Kingdom between 1870 &
1940, Raul Prebisch demonstrated that the Terms of Trade had secular tendency to
move against the primary products & in favour of manufactured & capital goods”.
So in Equation form,
Tg = Qm/Qx
5. Assumptions
As income rises in the advanced countries, the pattern of demand shifts from primary products
to the manufactured products due to Engel’s law.
There is slow rise in demand for primary products in the developed countries.
The export market for product of LDC’s is competitive.
The export market for products of developed countries is monopolistic.
Wages and prices are low in LDC’s.
The appearance of substitutes for products of LDC’s reduces demand for them.
The benefit of increased productivity is not passed by the producers of manufactured products
in advanced countries to the LDC’s through lower prices.
The economic growth in the LDC’s is indicated by income terms of trade.
6. Reasons of Secular deterioration of terms
of trade
1. Absence of Qualitative Improvement of Products
2. Technological Progress
3. Low Income Elasticity of Demand
7. Criticism
Not Firm Basis for Inference
Overstatement of losses and understatement of gains
Faulty Index of TOT
Inapplicability of Engel’s Law
Benefits of Foreign Investment
