4 ms·
Probably not. One of the most fundamental and vexing problems of macro-economics is that individial effects often don't aggregate to the larger system: https://
by em500 8y ago
Probably not. One of the most fundamental and vexing problems of macro-economics is that individial effects often don't aggregate to the larger system: https://en.wikipedia.org/wiki/Aggregation_problem https://en.wikipedia.org/wiki/Aggregation_problem
Just consider the simplest thought experiment: levy a one-off extra tax of $0.01 on every tax payer and credit some random poor person. This is almost certainly a strict Pareto improvement, but it clearly doesn't scale.