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Social Indifference Curves and Aggregate Demand

Hal R. Varian

The Quarterly Journal of Economics, 1984, vol. 99, issue 3, 403-414

Abstract: Suppose that the government maximizes a fixed social welfare function through the use of policy instruments. These instruments may be classical lump sum transfers of wealth or such second-best instruments as commodity taxes, income taxes, etc. Then under certain conditions the aggregate demand behavior for this economy will appear as though it were generated by a single representative consumer.

Date: 1984
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The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

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