On the Margolis ?thought experiment,? and the applicability of demand-revealing mechanisms to large-group decisions

Brubaker, Earl R.

doi:10.1007/bf00210366

Cited by 3 publications

(1 citation statement)

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“…For example, Margolis (1982) described a thought experiment devising mechanisms that allow individuals to influence social choice subject to a special tax designed to elicit truthful revelations of preferences. However, Brubaker (1983) considered that the thought experiment of Margolis (1982) would lead to misrepresentations of economic facts collected by U.S. administrative agencies. In general, experimental economists often believe that classical economics is a pure thought experiment without being based on facts, but the classical theory's evolution has led to many beneficial results (Börgers 1996).…”

Section: Methodsmentioning

confidence: 99%

Towards a New Form of Undemocratic Capitalism: Introducing Macro-Equity to Finance Development Post COVID-19 Crisis

Ashta

2021

JRFM

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Sustainable Development Goal 16 talks about Peace, Justice, and Strong Institutions, and goal 10 talks about reducing inequality. A major problem exposed by the COVID-19 crisis is that public deficits seem to be the normal state in the business cycle’s booms and downturns, limiting capacity for emergencies. Corporate capitalism has an incentive to perpetuate deficits to increase growth, provide risk-free interest income to financial institutions, and to increase inequalities and economic injustice. To counter this problem, the purpose of this communication is to suggest that countries need to issue equity capital, which we term macro-equity. This macro-equity will give dividends to its shareholders in times of public surplus and issue new shares in times of public deficits. The communication is written as a mind experiment, debating the issues that may arise. This proposal raises many questions of an ethical and moral nature that will lead to passionate debate. The use of macro-equity will reduce countries’ stress, created by high public debt. With appropriate incentives, it may create an entrepreneurial mindset in political leaders that may even reduce corruption and promote redistribution. The moral and ethical issues need to be weighed against the street violence in the absence of any change.

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