Define heterogeneity, Public Economics

Assignment Help:

Q. Define Heterogeneity?

We know that breaking of the assumptions of homogeneity of agents, in welfare economics, makes it difficult to define social welfare function. Breaking of the assumption of homogeneity means we are going to accept that agents are not homogeneous, i.e., not identical in their tastes and preferences, incomes and intellectual grounds, in other words, they are heterogeneous.

Remember, this heterogeneity is the cause of conflict. Conflict is the cause of political existence. Its importance has been appreciated in some economic literature of public policy. Atkinson and Stieglitz (1900), for example, write, "If everyone had identical tastes and endowments, then many public finance questions would lose their significance, and this is particularly true of the behaviour of the state. If the interests of the members of society could be treated as those of ‘representative' individual, then the role of state would be reduced to that of efficiently carrying out agreed decision."


Related Discussions:- Define heterogeneity

How important is policy implementation, Question 1: "A Policy may be de...

Question 1: "A Policy may be defined as a major course of action within a given environment intended to reach a goal or realize an objective." Give an account of the making

Health economics, why is it important to consider the complex nature of hea...

why is it important to consider the complex nature of health and health care when examining economic principles related to health care delivery?

The myth of public goods by mark davis, summarize the basic tents of the ar...

summarize the basic tents of the argumentsin this case

Budget, what is the difference between budget deficit and fiscal deficit

what is the difference between budget deficit and fiscal deficit

Regulations and competition policy - privatization, One of these is deregul...

One of these is deregulator or privatization of public enterprises or utilities. Deregulation is a world wide phenomenon. But experience of power failure in California and Mumbai r

Cost-based methods - restoration cost, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What is rational policy, Question 1: " Public policy gives one a better...

Question 1: " Public policy gives one a better understanding of what governments do, why they do what they do and what difference public policy makes to the lives and circumst

Pareto Optimality, Consider an economy in which George and Harriet consume ...

Consider an economy in which George and Harriet consume only ale and bread

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd