Francqui The design of economic and political institutions Bruxelles 2425 juin 2013 Equality in microeconomic theory and beyond Maurice Salles Université de Caen CPNSS LSE ID: 551135
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Slide1
Conférence FrancquiThe design of economic and political institutionsBruxelles, 24-25 juin 2013
Equality
in
microeconomic
theory
and
beyond
Maurice Salles
Université de Caen
CPNSS, LSE
Murat
Sertel
Center,
Bilgi
University
, IstanbulSlide2
On Equality, Social Choice Theory, and Normative Economics
1.
Equality
in
equilibrium
theory
1.1. Exchange
economies
1.2. Economies
with
production
2.
Equality
in social
choice
theory
,
political
science …
2.1.
Individuals
2.1.1.
Anonymity
2.1.2. Power
2.2. Alternatives (
neutrality
)Slide3
On Equality, Social Choice Theory, and Normative Economics
3.
Equality
in normative
economics
/social
ethics
3.1.
Resources
3.2.
Opportunities
3.3.
Welfare
3.4.
Capabilities
4.
Equality
and the incidence of
formal
methods
4.1.
Measure
theory
4.2.
Commodity
spacesSlide4
On Equality, Social Choice Theory
, and Normative
Economics
What
is
Equality? Equality of What? (Amartya Sen, Tanner Lectures 1979)Equality/Inequality Robert Badinter Amartya SenSlide5
On Equality, Social Choice Theory, and Normative Economics
Equality
in
microeconomic
theory
(
general equilibrium theory: initial endowments, preferences, shares of profits) Lionel McKenzie Gérard Debreu Kenneth Arrow Robert Aumann Lionel McKenzie Gérard Debreu Kenneth Arrow Robert AumannSlide6
On Equality, Social Choice Theory, and Normative
Economics
Equality
in social
c
hoice
theory, political science: individuals (power, influence, anonymity), alternatives/social states/candidates (neutrality) Lloyd Shapley Martin Shubik John Banzhaf III Lionel PenroseSlide7
On Equality, Social Choice Theory, and Normative
Economics
Equality
in normative
economics
, social
ethics
: incomes, opportunities, well-beingsPhilosophers John Rawls Ronald Dworkin G. A. CohenSlide8
On Equality, Social Choice Theory, and Normative Economics
Economists
John Harsanyi Serge
Kolm
John
RoemerSlide9
On Equality, Social Choice Theory, and Normative Economics
a
nd
Marc
Fleurbaey
François
ManiquetSlide10
On Equality, Social Choice Theory, and Normative
Economics
Equality
in
equilibrium
theory
1.1. Exchange economiesℓ commodities.
ℝℓ
+
commodity
spacen
individuals (consumers)
Parameters
:
≿
i
: preferences of individual
i
e
i
: initial endowments of individual
i
(∊ℝ
ℓ
+
)
p
: price vectorSlide11
On Equality, Social Choice Theory, and Normative EconomicsSlide12
On Equality, Social Choice Theory, and Normative
EconomicsSlide13
On Equality, Social Choice Theory, and Normative
EconomicsSlide14
On Equality, Social Choice Theory, and Normative Economics
1.2.
Economies
with
production
Consumers
as
share holdersm production unitsαij
: share of consumer i
in production unit
j
wealth of consumer
i
: pei + Σ
j
α
ij
py
j
α
ij
=
1/nSlide15
On Equality, Social Choice Theory, and Normative Economics
2.
Equality
in social
choice
theory
, political science2.1. Individuals 2.1.1 Anonymity
Anonymity highlighted by Donald Saari
in
his
2008 book (
when
he considers conditions to be selected)Majority
ruleBorda rule and other voting rules
(
Dummett
,
Saari
)
But
Arrovian
framework
Non-
dictatorship
No veto
Extensions (Bordes and Salles,
Duggan
)Slide16
On Equality, Social Choice Theory, and Normative Economics
2.1.2 Power
Equal
power
Political
institutions (EU, UN…)
Power
measuresA priori (treaties, constitutions …)In practice (bargaining …)Representative democracy (fair representation, proportional rule …)Influence
Equal power or no powerSlide17
On Equality, Social Choice Theory, and Normative Economics
2.2.
Alternatives:
Neutrality
Voting
rules
(among the four conditions selected by Donald Saari)ConstitutionsTiesPower and neutrality in the Arrovian
framework (with independence of
irrelevant
alternatives)
Power,
neutrality
, welfarism: Sen’s impossibility theoremIndividual
rightsSlide18
On Equality, Social Choice Theory, and Normative Economics
3.
Equality
in normative
economics
/social
ethics
3.1. ResourcesPrimary goods (Rawls)Resources à la DworkinIncomes (
resources as generally considered in
economics
)
Basic
incomes (Van
Parijs)ELIE: Equal-Labor Income Equalisation (Kolm
) Equalisation labor is k
y
i
=
w
i
ℓ
i
+
t
i
t
i
= k (
w
⎼
w
i
)Slide19
On Equality, Social Choice Theory, and Normative Economics
3.2.
Opportunities
(
Roemer
)
D
iscriminationHandicapSkills (Fleurbaey, Maniquet)3.3. Welfare (Dworkin and others)3.4.
Capabilities (Sen)Slide20
On Equality, Social Choice Theory, and Normative Economics
4.
Equality
and the incidence of
formal
methods
4.1. Measure theory4.2 Commodity
spaces