Gibbardian libertarian claims revisited

Two resolution schemes for the impossibility theorems on the Gibbard-Kelly claims of libertarian rights, which are rather contrasting with each other, are proposed and their implications discussed. The first scheme asserts that there exists a collective choice rule satisfying the Pareto principle and the Gibbard-Kelly libertarian claims if there exists at least one socially unconcerned individual. The second scheme asserts existence of an eligible collective choice rule if there exists at least one liberal individual.     

The dynamic transformation of political systems through social contract: a game theoretic approach

 We consider how the political system of the state evolves in the process of economic development. We present a dynamic public goods economy with non-overlapping generations, which confronts the free-rider problem without the state. In each generation, individuals enter under the unanimous rule a social contract of the political system, either monarchy or democracy, and then attempt to establish the state under the contracted political system. If the state is established, it provides public goods by enforcing tax on its members. Our game theoretic analysis shows: (i) the state can be established if and only if social productivity in terms of the capital stock of public goods is lower than a critical level; (ii) individuals choose democracy if social productivity is sufficiently high, while monarchy may be chosen if it is not; (iii) social productivity stochastically converges to the critical level over generations; and (iv) a simulation result shows several transformation patterns of political systems. Received: 21 June 1994/Accepted: 7 November 1995     

The future of small farms in Asia

Farms throughout Asia are predominantly small. By nature, small farms use labour‐intensive production methods. The question arises as to the viability of small farms in the face of the rapidly increasing wage rate in most Asian countries. There is also indication that the production efficiency of small farms has declined relative to large farms in many Asian economies, indicating the increasing disadvantage of small farms in Asia. Therefore, this study argues that unless new policy measures are taken to expand farm size, Asia as a whole is likely to lose comparative advantage in agriculture and become an importer of food grains in the future.