Exploitation and efficiency

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Let us take any historical or contemporary economic society. Would economic efficiency become better if such society erects and enforces institutions that prohibit its members from the exploitation of excludable groups that can be defined by race, ethnicity, etc.? This question actually makes no sense. One must first identity the boundary of society, i.e., who make up the objective function. Irrespective of how one defines efficiency, one cannot assess the efficiency of institutions without determining who is covered and who is excluded. Efficiency judgments can make sense only when one defines the social boundary.
LanguageEnglish
Pages363-377
Number of pages15
JournalThe Review of Black Political Economy
Volume44
Issue number3-4
DOIs
StatePublished - Dec 2017

Keywords

  • Altruism
  • Collective Welfare Function
  • Externality vs. Pecuniary Externality
  • Hicks-Kaldor Welfare Criterion
  • Injustice
  • Inter-society Utility Comparison
  • Radical Social Theory

Cite this

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title = "Exploitation and efficiency",
abstract = "Let us take any historical or contemporary economic society. Would economic efficiency become better if such society erects and enforces institutions that prohibit its members from the exploitation of excludable groups that can be defined by race, ethnicity, etc.? This question actually makes no sense. One must first identity the boundary of society, i.e., who make up the objective function. Irrespective of how one defines efficiency, one cannot assess the efficiency of institutions without determining who is covered and who is excluded. Efficiency judgments can make sense only when one defines the social boundary.",
keywords = "Altruism, Collective Welfare Function, Externality vs. Pecuniary Externality, Hicks-Kaldor Welfare Criterion, Injustice, Inter-society Utility Comparison, Radical Social Theory",
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Exploitation and efficiency. / Khalil, Elias L.

In: The Review of Black Political Economy, Vol. 44, No. 3-4, 12.2017, p. 363-377.

Research output: Contribution to journalArticleResearchpeer-review

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T1 - Exploitation and efficiency

AU - Khalil,Elias L.

PY - 2017/12

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KW - Collective Welfare Function

KW - Externality vs. Pecuniary Externality

KW - Hicks-Kaldor Welfare Criterion

KW - Injustice

KW - Inter-society Utility Comparison

KW - Radical Social Theory

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