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Which allocation system is more effective in getting a commodity to those who need it most?

Authors :
Prell, Mark A.
Source :
Journal of Comparative Economics. April, 1996, Vol. 22 Issue 2, p165, 14 p.
Publication Year :
1996

Abstract

The efficiency of commodity allocation systems is determined by comparing free access and price controlled systems with price and rationing systems. An extended Weitzman allocation model, which considers quadratic loss as a proxy to efficiency, indicates that optimal price controls are more effective than free access allocation. A rationing system which precludes resale of commodities entails government distribution costs which reduces its efficiency.

Details

ISSN :
01475967
Volume :
22
Issue :
2
Database :
Gale General OneFile
Journal :
Journal of Comparative Economics
Publication Type :
Academic Journal
Accession number :
edsgcl.18367863