In Economics, there is a number of what may be called equivalence theorems. They indicate how two seemingly different economic mechanisms are equivalent in most or all of their consequences. Typically the equivalence may be established under certain conditions that are considered general enough for the theorem to be relevant. Perhaps the oldest and one […]
Here is an example of the “discursive dilemma” or “doctrinal paradox”: Say that a jury of three members must decide by majority rule whether a candidate should be accepted in a group. The rules specify that the candidate must meet two requirements, A and B, to be accepted. The first member of the jury believes […]
It is widely accepted that low carbon technologies will contribute to reduce greenhouse gas emissions, mostly those coming from carbon dioxide, and thus slow down the global warming. That’s why most of the largest economies in the world have committed to reduce their gas emissions by supporting an unprecedented transition from the current fossil-fuel based […]
Intellectual protection via patents and copyright provisions, among other mechanisms, has been defended on the grounds that, without it, intellectual works would not be produced in the first place. Consequently, the monopoly granted by the patents or the copyright was considered a second best. This rational has been challenged in recent times, as it did […]
Raluca et al . (2014) provide a survey of the economic studies regarding the performance of Fair Trade certifications. They focus on the coffee industry, by large the most important product under the Fair Trade label. In this article I summarize their main findings and conclusions. The aim of Fair Trade certification is to improve […]
In his book Climate Matters , John Broome (2012) examines climate change from the point of view of moral philosophy. Unlike many other essays that consider the ethics of social choice in this matter, Broome’s book contains some chapters that focus on the implications for individual ethics: “ Should you stop flying to distant places […]
In the first part of this series, I presented the rationale for government intervention in the health sector and, then, summarized the findings of Stabile and Thomson (2014) on the problems of financing and risk pooling in different health systems. In this second part I continue with the problems on demand, coverage decisions, evaluation and […]
Insurance markets are far from meeting the conditions that make competitive markets efficient. Here is an incomplete but illustrative list of problems in the case of health insurance: Externalities : my health quality affects me, but also affects people around me, like in the case of contagious diseases. Economic theory predicts that consumers will not […]
This is the English version of a section in Ferreira (2014) , a paper dedicated to overview the experiments in Industrial Organization that appeared in Revista de Economía Industrial, and is reproduced here with the permission of the journal. Until a couple of decades ago many of the so called natural monopolies were regulated through […]
This is the English version of a section in Ferreira (2014) , a paper dedicated to overview the experiments in Industrial Organization, to appear in Revista de Economía Industrial, and is reproduced here with the permission of the journal. The great majority of water collection and distribution in the world rely on a central authority […]