A Statistical Framework for Pareto-Improving Resource Reallocation

boughabi, houssam (2026): A Statistical Framework for Pareto-Improving Resource Reallocation.

Abstract

This paper introduces a statistical framework for characterizing Pareto-improving resource reallocations through weighted allocation schemes. The objective is not to solve the resulting optimization problem but rather to define the admissible set of weight vectors generating Pareto improvements and to provide a basis for its subsequent statistical characterization.

• Item Type: MPRA Paper
• Language: English
• Keywords: Pareto efficiency; resource reallocation; weighted allocation mechanisms; welfare economics; statistical admissibility
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C18 - Methodological Issues: General; D - Microeconomics > D6 - Welfare Economics > D60 - General; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice ; Clubs ; Committees ; Associations

References

Pareto, V. (1906). Manual of Political Economy. Oxford University Press.

Sen, A. K. (1970). Collective Choice and Social Welfare. Holden-Day, San Francisco.

Arrow, K. J. (1951). Social Choice and Individual Values. Yale University Press.

Samuelson, P. A. (1947). Foundations of Economic Analysis. Harvard University Press.

Debreu, G. (1959). Theory of Value: An Axiomatic Analysis of Economic Equilibrium. Yale University Press.

Atkinson, A. B. (1970). On the Measurement of Inequality. Journal of Economic Theory, 2(3), 244–263.

Mirrlees, J. A. (1971). An Exploration in the Theory of Optimum Income Taxation. Review of Economic Studies, 38(2), 175–208.

Varian, H. R. (1974). Equity, Envy, and Efficiency. Journal of Economic Theory, 9(1), 63–91.

Mas-Colell, A., Whinston, M. D., and Green, J. R. (1995). Microeconomic Theory. Oxford University Press.

Kalinowski, T., Nardoytska, N., and Walsh, T. (2013). A Social Welfare Optimal Sequential Allocation Procedure. arXiv preprint arXiv:1304.5892.