Introduction To Maximum Welfare Principle ↓ Richard Musgrave designates Dalton's Principle of 'Maximum Social Advantage' as the 'Maximum Welfare Principle of Budget Determination'. According to Musgrave, Dalton has proposed two principles of budget policy. The first is that resources should be distributed among different directions in such a way as to...
An emissions tax The purpose of this page is to describe an emissions tax (e.g., carbon tax) using the most basic of all environmental economic models. Consider a polluting firm that faces an increasing marginal abatement cost curve (click on the thumbnail for a larger picture). Left...
Prabhat Patnaik The Narendra Modi government has now carried its penchant for undermining institutions to the national budget itself. Not only has it treated what should have been an interim budget, as its tenure lasts barely two months into the new financial year, as a full-fledged...
Jomo Kwame Sundaram and Rosli Omar Owing to our varied circumstances and experiences, there are contradictory tendencies to either exaggerate or underestimate the power and importance of artificial intelligence (AI) in contemporary society. Nor should we uncritically legitimize everything AI can be used for, even if...
Freedom Is Future-Facing Free-market advocates must not be beguiled that technological change and disruption mean the end of capitalism. Conservatives and classical liberals face a challenge today similar to that faced by William F. Buckley Jr. at the founding of National Review as he stood athwart history yelling, “Stop!”...
4 Quotes on Free Trade from Classical Economists Timeless wisdom from four great economists whose ideas have changed the world. David Hume Nothing is more usual, among states which have made some advances in commerce, than to look on the progress of their neighbours with a suspicious eye,...
The Use of Knowledge in Society No Other Article Explains the Economic Problem As Clearly F. A. Hayek If you want to learn as much as possible about economics from just one article, read Friedrich A. Hayek’s “The Use of Knowledge in Society,” published in the September 1945...
C. P. Chandrasekhar As the term of the current NDA government nears its end, with signs of popular dissatisfaction over its performance on the economic front, the urge to ramp up expenditure to woo the electorate intensifies. But a number of factors have combined to render...
C.P. Chandrasekhar and Jayati Ghosh It’s that time of year again – the time when all eyes turn to those magic numbers, the actual and proposed fiscal deficits of the central government as shares of GDP. Breathless news anchors will interrogate financial investors on what the...
Jayati Ghosh The Brahmastra, or ultimate weapon, of 10% reservation in government employment for economically weaker sections (EWS) has been cynically deployed already, but even that does not seem to be delivering the desired public approval. Perhaps the general public has wised up to the fact...