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