| Creators: |
Kunze, Oliver and Schlatterer, Florian |
| Title: |
The Edgeworth Cube : an economic model for social peace |
| Item Type: |
Article or issue of a publication series |
| Projects: |
ILR |
| Journal or Series Title: |
International Journal of Applied Behavioral Economics |
| Page Range: |
pp. 30-46 |
| Date: |
April 2018 |
| Divisions: |
Wirtschaftswissenschaften |
| Abstract (ENG): |
Social peace is an asset to every society. Its absence endangers the well-being and the safety of the
population and the stability of states. In order to better understand the interdependencies of poverty,
social peace and migration pressure the authors introduce the model of the “Edgeworth-Cube” which is
an extension of the classical Edgeworth Box model by one dimension. This new dimension can either
be interpreted as “aggression” (which reduces “social peace” for others) or as “migration pressure”
(which results from a worldwide heterogeneous distribution of wealth), and this new dimension
is modelled as a non-budget-constrained unilateral immaterial good. The “Edgeworth-Cube” also
differentiates vital (essential) goods from normal (non-essential) goods. By focusing on extremely
imbalanced endowments and by formal mathematical modeling the authors show in their approach
that applying behavioral pressure (i.e. aggression or migration pressure) has an existential economic
value for the poor on the one hand. On the other hand, the authors show that transfer payments have
a systemically limited potential to keep aggression and migration pressure at bay. |
| Forthcoming: |
No |
| Language: |
English |
| Link eMedia: |
Download |
| Citation: |
Kunze, Oliver and Schlatterer, Florian
(2018)
The Edgeworth Cube : an economic model for social peace.
International Journal of Applied Behavioral Economics, 7 (2).
pp. 30-46.
|
