Articles
Articles and analyses from the INET community on the key economic questions of our time.
What the Steve Jobs Movie Won’t Tell You About Apple’s Success
Public funding behind the technology is the secret ingredient.
The Teaching of Economics
$1.90 Per Day: What Does it Say?
The Efficiency of Markets
A student of microeconomics learns that any competitive equilibrium leads to a Pareto efficient outcome (First Fundamental Theorem of Welfare Economics). What do we mean by the efficiency or inefficiency of markets?
The Fairness of Markets
A student of microeconomics learns that any desirable efficient market allocation can be sustained by a competitive equilibrium (the Second Theorem of Welfare Economics), given appropriate lump-sum wealth redistributions. This is typically understood as a means to correct unfair market outcomes. What are the real world implications of the second theorem? How well does it address distributional concerns?