---------- Forwarded message ---------- From: Walter Schachermayer wschach@fam.tuwien.ac.at ---------- Forwarded message ---------- Date: Thu, 24 Jun 2004 16:09:21 +0200 From: Beatrix Pawelczak pawelcza@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@ihs.ac.at www: http://www.ihs.ac.at