Question
Question 3. This question basically asks you to compare the Arrow- Debrue model to the Dreze-Stern model. a. What features of the Arrow-Debrue model make
Question 3.
This question basically asks you to compare the Arrow- Debrue model to the Dreze-Stern model.
a. What features of the Arrow-Debrue model make it problematic to use in project evaluation ?
b. How is the Dreze-Stern model more useful from a theoretical prespective for project evaluation ?
c. In the D-S model we call the shadow price a su cient statistic. Why ?
d. In general why do economists prefer shadow prices over market prices when evaluating a policy ?
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Justice In A Global Economy Strategies For Home, Community, And World
Authors: Rebecca Todd Peters, Pamela K Brubaker, Laura A Stivers
1st Edition
0664229557, 9780664229559
