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

Similarities between physical capital and natural capital, Normal 0 ...

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

Theory of environmental policy, Normal 0 false false false ...

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

Indirect taxes on smoking, Discuss whether high indirect taxes are the best...

Discuss whether high indirect taxes are the best way to discourage smoking.

Tiebout Model, ‘…Policies that promote residential mobility and increase th...

‘…Policies that promote residential mobility and increase the knowledge of the consumer-voter will improve the allocation of government expenditures in the same sense that mobility

Classification of externality, Normal 0 false false false ...

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

Prepare a news release announcing the launch of network, The news release i...

The news release is the ‘granddaddy' of public relations writing vehicles. (a) As a PR student, show the main points you would consider when attempting to write an effective ne

Define heterogeneity, Q. Define Heterogeneity? We know that breaking of...

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. Breakin

Pareto improvement, 1. is pareto improved demonstrated using the edgeworth ...

1. is pareto improved demonstrated using the edgeworth box daigram?

Business environment, There is no doubt that the environment surrounding bu...

There is no doubt that the environment surrounding business organizations play an important role in influencing the decisions of those organizations and their strategic plans. That

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