ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Mukul MajumdarSubscribe to Mukul Majumdar

Decentralisation and Optimality

This paper touches upon some issues involving decentralisation, efficiency and the role of prices. Some of the ideas brought together here may be of interest to policy-makers interested in the role of the state in the era of 'liberalisation'. The first part of the paper deals with the Walras-Samuelson-Lange process for attaining a Pareto optimal allocation in a socialist economy. In the second part is sketched a Malinvaud-Samuelson type model of an economy evolving over a sequence of momentary equilibria and report on some results on the link between equilibrium and Pareto optimality in the long run.
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