Show or hide comments about the document.
Search over the document's text.
Share the document through social networks or e-mail.
After selecting an area on the page.
...you can:
copy the text
share the segment
comment
cite the document

Fall 1999

ISSN 0890-913X

Volume 15, Number 1

Categories: Economic Analysis

The Equity-Efficiency Debate

Richard Vedder, Ohio University

Lowell Gallaway, Ohio University

Download

e-mail

<< Back to editing
Previous version by
<< Older
Newer >>
Revert to this one

Edit
Cancel
Fullscreen

Show comments
Zoom:
Page: / 19

Line spacing:
Word spacing:

Search:FindClose

search results

TheEquity-EfficiencyDebateRichardVedderandLowellGallawayOhioUniversityTwothemesdominatethehistoryofeconomicthinking,theefficientuseofavailableresourcesandtheequitabledistributionoftheclaimstotheoutputgeneratedbythoseresources.Inshort,theprevailingissueshavebeeneconomicefficiencyand/oreconomicequity.Inapaperasbriefasthis,acomprehensivediscussionofthehistoryoftherelationshipbetweenequityandefficiencyisbeyondourcapability.However,twoparticular,althoughdiametricallyopposed,expositionsareenlightening.Webeginwiththebrilliant,butsometimeserratic,JohnStuartMill.Heraisedtheequity-efficiencyissuebyarguingthatthemostimportantdimensionofeconomicanalysisshouldbethedistributionofincome.Hisperceptionofthelinkagebetweenthetwoisclearlystatedinthefollowingremarks:"Thelawsandconditionsofproductionofwealthpartakeofthecharacterofphysicaltruths.Thereisnothingoptionalorarbitraryinthem...Itisnotsowiththedistributionofwealth.Thisisamatterofhumaninstitutionssolely.Thethingsoncethere,mankind,individuallyorcollectively,candowiththemastheylike"(Mill).ContrastthiswiththefollowingremarksbyLudwigvonMises:"...inthemarketeconomythisallegeddualismoftwoindependentprocesses,thatofproductionandthatofdistribution,doesnotexist"(Mises,1998).Withtheseviewsasbackground,wemayturntothepresentera.Inthelasttwentyyears,thepoliticalandintellectualrhetoricconcerningthedegreeofinequalityinthedistributionofincomeandwealthintheUnitedStateshasescalateddramatically.Thespecificsoftheseargumentshavebeendocumentedfrequently,(Gallaway&Vedder,1993;Matthews,1998)butafewsummarycommentsareinorder.Ingeneral,thereisanelementofdisarraywithintheeconomicsprofessionconcerningthenatureoftherelationship1

GLIFOS-digital_archive

Metadata [hide]

Title	The Equity-Efficiency Debate
Authors/Creators:	Richard Vedder, Ohio University Lowell Gallaway, Ohio University
Year:	1999
Volume:	15
Number:	1
Pages:	1 - 17
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Economic Theory, Rule of law, Private ownership, Equality, Efficiency, Government policy

Citation:
Vedder, Richard; Gallaway, Lowell / 1999. "The Equity-Efficiency Debate." The Journal of Private Enterprise, 15(1): 1-17.