Pareto Inferior Trade

S-Tier
Journal: Review of Economic Studies
Year: 1984
Volume: 51
Issue: 1
Pages: 1-12

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper shows that between two competitive but risky economies with no insurance markets, free trade may be Pareto inferior to no trade. The model is simple enough to show clearly the role prices play in transferring and sharing risk when there is an incomplete set of markets, but rich enough to exhibit the resulting inefficiencies dramatically.

Technical Details

RePEc Handle
repec:oup:restud:v:51:y:1984:i:1:p:1-12.
Journal Field
General
Author Count
2
Added to Database
2026-01-26