Comments on: Rodrik on Procedural Fairness and Trade http://willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/ The Sweet Release of Reason Tue, 22 May 2012 20:28:45 +0000 hourly 1 By: Will Wilkinson http://willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9748 Will Wilkinson Sat, 28 Apr 2007 19:49:00 +0000 http://www.willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9748 Bill, I think it's likely that you get a close to pareto-improved <em>life-cycle</em> from free-trade. Yeah, obviously technologies create competing out-groups. But just not very salient ones carved out along national lines. Bill, I think it’s likely that you get a close to pareto-improved life-cycle from free-trade.

Yeah, obviously technologies create competing out-groups. But just not very salient ones carved out along national lines.

]]> By: Will Wilkinson http://willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9750 Will Wilkinson Sat, 28 Apr 2007 19:49:00 +0000 http://www.willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9750 Bill, I think it's likely that you get a close to pareto-improved <em>life-cycle</em> from free-trade. Yeah, obviously technologies create competing out-groups. But just not very salient ones carved out along national lines. Bill, I think it’s likely that you get a close to pareto-improved life-cycle from free-trade.

Yeah, obviously technologies create competing out-groups. But just not very salient ones carved out along national lines.

]]> By: BillKorner http://willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9747 BillKorner Fri, 27 Apr 2007 23:48:52 +0000 http://www.willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9747 If the changed practices that generate bigger economic pies DO, as you acknowledge, "often generate large income transfers", then those changes that do so DO ALSO create new winners and new losers. Are you saying that, as long as the economic pie grows, then the resulting state is ipso facto a Pareto improvement over the previous state. Clearly not so! Perhaps its a Kaldor-Hicks improvement if we think that those made worse off can actually be compensated, for example with money. But we should only think that after we consider any given case. And there is a "competing out-group" with any technological change. You could ask, for example, typewriter manufacturers and repair persons. If the changed practices that generate bigger economic pies DO, as you acknowledge, “often generate large income transfers”, then those changes that do so DO ALSO create new winners and new losers.

Are you saying that, as long as the economic pie grows, then the resulting state is ipso facto a Pareto improvement over the previous state. Clearly not so! Perhaps its a Kaldor-Hicks improvement if we think that those made worse off can actually be compensated, for example with money. But we should only think that after we consider any given case.

And there is a “competing out-group” with any technological change. You could ask, for example, typewriter manufacturers and repair persons.

]]> By: BillKorner http://willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9749 BillKorner Fri, 27 Apr 2007 23:48:00 +0000 http://www.willwilkinson.net/flybottle/2007/04/26/rodrik-on-procedural-fairness-and-trade/#comment-9749 If the changed practices that generate bigger economic pies DO, as you acknowledge, "often generate large income transfers", then those changes that do so DO ALSO create new winners and new losers. Are you saying that, as long as the economic pie grows, then the resulting state is ipso facto a Pareto improvement over the previous state. Clearly not so! Perhaps its a Kaldor-Hicks improvement if we think that those made worse off can actually be compensated, for example with money. But we should only think that after we consider any given case. And there is a "competing out-group" with any technological change. You could ask, for example, typewriter manufacturers and repair persons. If the changed practices that generate bigger economic pies DO, as you acknowledge, “often generate large income transfers”, then those changes that do so DO ALSO create new winners and new losers.

Are you saying that, as long as the economic pie grows, then the resulting state is ipso facto a Pareto improvement over the previous state. Clearly not so! Perhaps its a Kaldor-Hicks improvement if we think that those made worse off can actually be compensated, for example with money. But we should only think that after we consider any given case.

And there is a “competing out-group” with any technological change. You could ask, for example, typewriter manufacturers and repair persons.

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