A BEJTE Advances article.

Abstract

According to a common opinion in economic literature, the National Income Test provides a necessary condition for potential Pareto dominance. This paper demonstrates that this statement is true in pure-exchange economies, but, in general, false in production economies.

Submitted: September 13, 2007 · Accepted: November 12, 2007 · Published: December 12, 2007

Recommended Citation

Montesano, Aldo (2007) "The Compensation Principle and the National Income Test," The B.E. Journal of Theoretical Economics: Vol. 7 : Iss. 1 (Advances), Article 44.
Available at: http://www.bepress.com/bejte/vol7/iss1/art44