2. Outline: Efficiency and Equity. Conditions for Pareto EfficiencyFirst Fundamental TheoremEfficiency vs Equity and the Second Fundamental TheoremFirst Best vs Second BestLump sum taxes. 3. Necessary Conditions for Pareto Efficiency. First Best:an allocation which is Pareto efficient subject only to overall resource constraints and technology constraintSecond Bestan allocation which is Pareto efficient subject to resource constraints and additional constraints (eg. imperfect informa9449
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.