An adverse social welfare effect of a doubly gainful trade
An adverse social welfare effect of a doubly gainful trade
View/Date of Publication
05.2018Publisher
Center for Development Research (ZEF), University of BonnPublisher Location
BonnMetadata
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Citable Link (Handle URI) 
https://hdl.handle.net/20.500.11811/12110
Abstract
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.
Subjects
Gains from trade, Increase of incomes, Decrease of income gap, Integration, Change of social space, Low relative income, Social welfare
Classification (DDC)
300 Sozialwissenschaften, Soziologie, Anthropologie 320 Politik 330 WirtschaftFirst Publication
https://www.zef.de/fileadmin/user_upload/ZEF_DP_260_OS.pdfPart of Series
ZEF-Discussion Papers on Development Policy ; 260Stark, Oded; Zawojska, Ewa; Kohler, Wilhelm; Szczygielski, Krzysztof: An adverse social welfare effect of a doubly gainful trade. Bonn: Center for Development Research (ZEF), University of Bonn, 2018. In: ZEF-Discussion Papers on Development Policy, 260.
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12110
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12110
@techreport{handle:20.500.11811/12110,
author = {{Oded Stark} and {Ewa Zawojska} and {Wilhelm Kohler} and {Krzysztof Szczygielski}},
title = {An adverse social welfare effect of a doubly gainful trade},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2018,
month = may,
series = {ZEF-Discussion Papers on Development Policy},
volume = 260,
note = {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.},
url = {https://hdl.handle.net/20.500.11811/12110}
}
author = {{Oded Stark} and {Ewa Zawojska} and {Wilhelm Kohler} and {Krzysztof Szczygielski}},
title = {An adverse social welfare effect of a doubly gainful trade},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2018,
month = may,
series = {ZEF-Discussion Papers on Development Policy},
volume = 260,
note = {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.},
url = {https://hdl.handle.net/20.500.11811/12110}
}
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