Econometrica Vol. 59 No. 1 1991
The Optimality of Boiteux-Ramsey Pricing
Abstract
Consider an economy with one public enterprise that is subject to a budgetary constraint and charges prices according to the first-order necessary conditions suggested by M. Boiteux (1956) or F. P. Ramsey (1927). The authors state conditions sufficient to ensure that the resulting allocation is second best. The proof builds on arguments used to demonstrate the Pareto efficiency of marginal cost pricing under appropriate assumptions.
- DOI
- 10.2307/2938242
- Volume
- 59
- Issue
- 1
- Pages
- 99
- Sources
- bibtex:phds-export.bib crossref openalex