Theoretical and Applied Economics
No. 11 / 2008 (528)
The Impossibility of a Paretian Libertarian: a Solution through the Imposition of a Rationality Condition on Individual Preferences on Conjunct Alternatives
National School of Political and Administrative Studies, Bucharest
Abstract. In this article I present the Impossibility of a Paretian Libertarian theorem (Sen) and I discuss its significance with regard to the problem of externalities. I introduce two conditions for the selection of an “acceptable” solution for this impossibility result: efficacy for real societies and ideological fidelity. I present Hillinger-Lapham, Gibbard, Blau and Saari solutions and I classify them according to the two conditions mentioned above. I extend the social choice literature by introducing a new solution consisting in a reformulation of the libertarian at the minimal-rational libertarian preferences. In this formulation the only relevant kind of preferences are those that are “minimal-rational libertarian”. This solution satisfies both the efficacity for real societies and the ideological fidelity conditions.
Keywords: externalities; ideological fidelity; social welfare function; social decision function; minimal-rational libertarian preferences.
Contents
- Towards a Comprehensive Policy on Entrepreneurship Education in the European Higher Education
Mihai Korka
Olav Spilling
- The Labour Mobility in the European Union: Economic and Social Determinants
Liana Son
Ioan Talpos
Ciprian Sipos
- The Impact of Trades on Daily Volatility: an Empirical Study for Romanian Financial Investments Funds
Bogdan Negrea
Lucian Tatu
Andreea Stoian
- Application of Discriminant Analysis on Romanian Insurance Market
Constantin Anghelache
Dan Armeanu
- Environment Protection and Implementation of its Policies in Romania
Marieta Stanciu
Carmen Puiu
- An Analysis of the Romanian General Accounting Plan. Opportunities for Adaptation
to the Activity-Based Costing (ABC) Method
Sorinel Capusneanu
Irina-Alina Preda
- Productivity and Performance through Marketing Planning
Elena Enache
Cristian Morozan