01 August 2016 3 899 Report

We know that trickledown ideas are indirect ways of dealing with externalities hoping that as dominant components do better  or expand or grow the passive or dominated or exploited components will some how share too one day in the benefits of that growth....So if we know the externalities, we know or we should be able to guess the nature of the trickle down effect expectations associated with such a model...

In the traditional market model of Adam Smith there are two externalities, social and environmental, but the classic trickle down effect is associated only with social issues/externalities(e.g. poverty), not environmental issues.  And this is a theoretical inconsistency that may be explained by the fact that environmental issues are issues that relatively recently became relevant issues as compared to social issues...

In the perfect green market only social issues are externalities so the green trickle down effect  and expectation is related to social issues only(e.g. poverty).

What about in perfect red market? what is or should be the expectation  and the nature of red trickle down effect? Any ideas?

More Lucio Muñoz's questions See All
Similar questions and discussions