TY - JOUR
T1 - The enrichment of a sector (individual, region or country) benefits others
T2 - the third welfare theorem?
AU - Ng, Yew Kwang
PY - 1996
Y1 - 1996
N2 - The economic enrichment of a sector may make other sectors as a whole better or worse off. However, for the benchmark case of proportionate enrichment, other sectors tend to gain. This result is shown using offer curves, supply and demand analysis, Cobb-Douglas utility functions, and a more general case. Allowing the enriching sector to be monopolistic does not affect the result. Semi-economic enrichment through migration and population growth also makes others better off. Most enrichments also tend to be equalizing in their effects on others.
AB - The economic enrichment of a sector may make other sectors as a whole better or worse off. However, for the benchmark case of proportionate enrichment, other sectors tend to gain. This result is shown using offer curves, supply and demand analysis, Cobb-Douglas utility functions, and a more general case. Allowing the enriching sector to be monopolistic does not affect the result. Semi-economic enrichment through migration and population growth also makes others better off. Most enrichments also tend to be equalizing in their effects on others.
UR - http://www.scopus.com/inward/record.url?scp=0006900779&partnerID=8YFLogxK
U2 - 10.1111/j.1468-0106.1996.tb00177.x
DO - 10.1111/j.1468-0106.1996.tb00177.x
M3 - Article
AN - SCOPUS:0006900779
VL - 1
SP - 93
EP - 115
JO - Pacific Economic Review
JF - Pacific Economic Review
SN - 1361-374X
IS - 2
ER -