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Licensed Unlicensed Requires Authentication Published by De Gruyter December 12, 2007

The Compensation Principle and the National Income Test

Aldo Montesano

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.

Published Online: 2007-12-12

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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