An adverse social welfare effect of a doubly gainful trade

• 成果类型: Article
• 署名作者: Stark, Oded; Zawojska, Ewa; Kohler, Wilhelm; Szczygielski, Krzysztof
• 署名单位: University of Bonn; University of Warsaw; Eberhard Karls University of Tubingen
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2018.03.004
• 发表日期: 2018
• 页码: 77-84
• 关键词: Gains from trade; Increase of incomes; Decrease of income gap; integration; Change of social space; Low relative income; social welfare

摘要

Acknowledging individuals' distaste for low relative income renders trade less appealing when trade is viewed as a technology that integrates economies by merging separate social spheres into one. We define a trembling trade as a situation in which gains from trade are overtaken by losses of relative income, with the result that global social welfare is reduced. A constructive example reveals that a trembling trade can arise even when trade is doubly gainful in that it increases the income of every individual and narrows the income gap between the trading populations. (C) 2018 Elsevier B.V. All rights reserved.