Equality and Efficiency: The Big Tradeoff [Arthur M Okun] on *FREE * shipping on qualifying offers. Book by Arthur M Okun. Equality and Efficiency: The Big Tradeoff (A Brookings Classic) [Arthur M. Okun, Lawrence H. Summers] on *FREE* shipping on qualifying offers. Arthur Okun is known mainly for Okun’s Law, which describes a linear relation In Equality and Efficiency, the Big Tradeoff Okun introduced the metaphor of the.

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The market needs to be kept in it’s place. Receive emails when we post new items of interest to you.

As Okun puts it: Over longer horizons, reduced inequality and sustained growth may be two sides of the same coin. In recent work Berg, Ostry, and Zettelmeyer, ; and Berg and Ostry,we discovered that when growth is looked at over the long term, the trade-off between efficiency and equality may not exist.

East Dane Designer Men’s Fashion. History has not been kind to some of his proposals in that regard.

We argue that income distribution may also—and independently—belong in this pantheon of critical determinants of efficienc duration. Amazon Efficiecny Food delivery from local restaurants. References Berg, Andrew, and Jonathan D. One person found this helpful. The Market needs a place 2. Read reviews that mention equality and efficiency arthur okun society economics inequality political economic relevant wealth academic college country ideas income insightful thought-provoking tradeoff.

I love this short book and re-read it every 5 years or so.

Okun clarifies the issues surrounding the tradeoff between equality and efficlency, rather than taking a firm position on the issue of how much society should exchange one for the other. The recent global economic crisis, with its roots in U. How do economies grow? We compare the risk that the spell will end in a given year with the values of these variables in previous years—at the beginning of the spell or the previous year—to minimize the risk of reverse causality.


Okun was a master of analogies. Given the current situation of rfficiency country the elimination of poverty is within our grasp.

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Read more Read less. Are social justice and social product at war with one another? If you are a seller for this product, would you like to zrthur updates through seller support? Equality and Efficiency is the perfect embodiment of that legacy, valued both by professional economists and those readers with a keen interest in social policy. Berg and Jonathan D. Today, Okun’s dual theme feels incredibly equaliity as we grapple with the hot-button topic of income inequality. Where growth laggards differ from their more successful peers is in the degree to which they have been able to sustain growth for long periods of time.

Polity IV Project, www. Arthur Melvin Okun is widely considered among the most important macroeconomists of the twentieth century.

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Oil wealth in the s initially financed large increases in the public sector, particularly in public employee wages, which proved very difficult to cut when oil prices fell.

Of course, inequality is not the only thing that matters but, from our analysis, it clearly belongs on the list of well-established growth factors such as the quality of political institutions or trade openness. Berg, Andrew, and Jonathan D. Please send your letters to fanddletters imf.


In the face of the current global economic turmoil and the need for difficult economic adjustment and reform in many countries, it would be better if okhn lessons were remembered rather than relearned.

Finance & Development, September – Equality and Efficiency

At the level of simple arthuur, more inequality seems associated with less sustained growth. It appears to be the case in, for example, Cameroon. Even the poorest of countries have managed to get growth going for several years, only to see it peter out. The Big Tradeoffwith its difficult questions about the uneasy relationship between capitalism and democracy, is most certainly Okun’s masterwork. Inequality may make it harder for governments to make difficult but necessary choices in the face of shocks, such as raising taxes or cutting public spending to avoid a efficjency crisis.

Okun assumes that income inequality must be extinguished.

If these efforts distort incentives and undermine growth, they can do more harm than good for the poor. The Big Tradeoff by Arthur M. The measure of inequality is the Gini coefficient, which varies from zero all households having the same income to okyn income received by one household.