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Economic Theory Bulletin

, Volume 7, Issue 2, pp 259–269 | Cite as

Transfer paradox in a stable equilibrium

  • Ram Sewak Dubey
  • Minwook KangEmail author
Research Article
  • 53 Downloads

Abstract

The transfer paradox describes the situation in which transfers of initial endowments within competitive market make the donor better off and (or) the recipient worse off. Advantageous redistribution, strong transfer paradox, and Chichilnisky paradox are the three cases of the transfer paradox in a stable equilibrium, wherein each case produces a different welfare outcome. This paper shows that the three paradoxes are concretely related by applying Kaldor welfare measure.

Keywords

Advantageous redistribution Chichilnisky Paradox Strong Paradox 

JEL Classification

D50 F20 

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Copyright information

© Society for the Advancement of Economic Theory 2018

Authors and Affiliations

  1. 1.Department of Economics, Feliciano School of BusinessMontclair State UniversityMontclairUSA
  2. 2.Department of Economics, School of Social Sciences, College of Humanities, Arts, and Social SciencesNanyang Technological UniversitySingaporeSingapore

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