Pareto's Compensation Principle

Posted: 17 Oct 1999

See all articles by Murray C. Kemp

Murray C. Kemp

Macquarie University - College of Commerce; UNSW Australia Business School, School of Economics; Chukyo University

Paul Pezanis-Christou

U. of Adelaide School of Economics

Abstract

Pareto is sometimes credited with an early formulation of the ill-fated Hicks or Kaldor principles of hypothetical compensation. The basis for this claim is Pareto's 1894 article "Il massimo di utilita dato dalla libera concorrenza." However in that paper Pareto argued to the contrary, that in the formulation of economic policy compensation should be a consideration only if it is carried out. Our purpose is to document this claim.

JEL Classification: N01

Suggested Citation

Kemp, Murray C. C. and Pezanis-Christou, Paul, Pareto's Compensation Principle. Available at SSRN: https://ssrn.com/abstract=164826

Murray C. C. Kemp

Macquarie University - College of Commerce ( email )

Sydney, New South Wales
Australia

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia
+61 2 9385 3325 (Ext. 3325) (Phone)
+61 2 9313 6337 (Fax)

Chukyo University

101-2 Yagoto Honmachi
Showa-ku Institute of Economics
Nagoya-shi, Aichi-ken

Paul Pezanis-Christou (Contact Author)

U. of Adelaide School of Economics

Adelaide
Australia

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