Destruction or transfer
Year: 2025
Type: article
Abstract: This paper investigates the relationship between the “transfer paradox” and “destruction paradox”. We address two key questions: (1) When faced with either paradox, is destruction or transfer more effective in improving the utility of the donor? (2) Does the existence of one paradox imply the existence or absence of the other? For a two-good economy, the destruction paradox always exists and is preferable when the transfer paradox decreases the price of the non-transferred good, but never occurs when the transfer paradox increases it. When the destruction paradox exists, destruction is always more effective than transfer for improving utility. • When transfer paradox lowers the foreign-good price, destruction is preferred. • If transfer paradox raises that price, destruction paradox does not occur. • When destruction paradox exists, destruction is preferred to transfer. • Results extend to multi-good settings.
Source: Economics Letters
Authors: Zhangchi Ding, Minwook Kang, Kyoowon Yang
Institutions: Korea University, University of California San Diego
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,030
OpenAlex ID: W4415978726