Introduction to the World Economy
Philip Leatherwood, Lecturer
Kazakhstan Institute of Management, Economics, and Strategic Planning
27 April, 2001
Environmental Economics
Barry Commoner—"Nature knows best."
The story of the Snail Darter.
Vilfredo Pareto—Pareto Optimality
Reallocation can not make anyone better off without making someone else worse off.
--OR-- There is no possibility to increase total net benefit through reallocation.
Dynamic Efficiency
Comparing value of current use to value of future use
Demands concept—tool—of Present Value
(Review example on page 31, 32)
Tragedy of the Commons
Recognizes that the costs of using a commonly owned resource is typically under estimated
John Rawls—The Veil of Ignorance
For decisions on policy, including resource allocation