Re: [OPE-L] Rationing/price control.

From: David Laibman (dlaibman@SCIENCEANDSOCIETY.COM)
Date: Fri Aug 03 2007 - 16:43:37 EDT


Alejandro,
Many thanks. I will check out both Bowen and your paper (my Spanish is 
not what I wish it were, but I can read, slowly).
Best,
David


Alejandro Agafonow wrote:
>
> Dear David:
>
> Howard Bowen, “The Interpretation of Voting in the Allocation of 
> Economic Resources”, /The Quarterly Journal of Economics/, Vol. 58, Nº 
> 1 (Nov. 1943).
>
> The above paper (attached herewith) just could be indirectly useful 
> for you. Bowen used an interesting way of representing a sort of 
> demand curves on page 47. He was worried about voting preferences and 
> represented voters’ preferences over the quantity of public goods, 
> grouping them by social classes.
>
> I took the idea translated to the demand of health services, to 
> represent poor people’s quantity loos of service in case of market 
> allocation, compared with the equitable rationing by the State. My 
> interpretation of Bowen’s graph is in: “The Limits of Economic 
> Efficiency in a Democratic Society” (Spanish), /Revista de Economía 
> Institucional/, Vol. 9, Nº 16, 2007. www.economiainstitucional.com 
> <http://www.economiainstitucional.com/>
>
> I found interesting your conclusion about the neutrality of 
> microeconomics tools concerning policy conclusions, but concerning 
> distribution issues it is difficult to say that, because we have 
> different conclusion if you accept the /law of decreasing marginal 
> utility of income/ as Arthur Pigou did or if you reject some 
> assumption of the said law as Lionel Robbins did.
>
> Best regards,
>
> Alejandro Agafonow
>
> ------------------------------------------------------------------------
>
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