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Transfer paradox in a stable equilibrium

Author

Listed:
  • Ram Sewak Dubey

    (Montclair State University)

  • Minwook Kang

    (Nanyang Technological University)

Abstract

The transfer paradox describes the situation in which transfers of initial endowments within competitive market make the donor better off and (or) the recipient worse off. Advantageous redistribution, strong transfer paradox, and Chichilnisky paradox are the three cases of the transfer paradox in a stable equilibrium, wherein each case produces a different welfare outcome. This paper shows that the three paradoxes are concretely related by applying Kaldor welfare measure.

Suggested Citation

  • Ram Sewak Dubey & Minwook Kang, 2019. "Transfer paradox in a stable equilibrium," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 259-269, December.
    • Handle: RePEc:spr:etbull:v:7:y:2019:i:2:d:10.1007_s40505-018-0158-3
    DOI: 10.1007/s40505-018-0158-3
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    References listed on IDEAS

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    Cited by:

    1. Kamei, Kenju, 2022. "Transfer paradox in a general equilibrium economy: An experimental investigation," Economics Letters, Elsevier, vol. 211(C).

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    More about this item

    Keywords

    Advantageous redistribution; Chichilnisky Paradox; Strong Paradox;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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