---------- Forwarded message ---------- From: Walter Schachermayer <wschach(a)fam.tuwien.ac.at> ---------- Forwarded message ---------- Date: Thu, 24 Jun 2004 16:09:21 +0200 From: Beatrix Pawelczak <pawelcza(a)ihs.ac.at> To: NOEG_VT: ; Subject: Invitation to IHS Public Lecture ÖFFENTLICHER GASTVORTRAG PUBLIC LECTURE Monday, 28 June, 2004 Institut für Höhere Studien 1060 Wien, Stumpergasse 56 4:00 p.m., HS II Herakles Polemarchakis Brown University, Providence Pareto Improving Taxes ABSTRACT In economies with externalities, competitive equilibria are constrained suboptimal: commodity taxes lead to a Pareto improvement after prices adjust and markets clear. The argument extends to economies with strategic interactions, incomplete asset markets or asymmetric information. The constrained suboptimality of competitive allocations provides foundations for a theory of economic policy in market economies. With: J. D. Geanakoplos, Yale University __________________________________________________________________ Bakk. phil. Beatrix Pawelczak Institute for Advanced Studies and Scientific Research Stumpergasse 56, 1060 Wien, Austria Tel: +43-(01)-59991-145 Fax: +43-(01)-59991-163 e-mail: pawelcza(a)ihs.ac.at www: http://www.ihs.ac.at