What Is Pareto's Law?

In the allocation of resources, if at least one person thinks that plan A is better than plan B, and no one thinks that A is worse than B, it is also considered that A is better than B from a social point of view. This is the so-called Pareto optimal state standard, referred to as the Pareto standard. Using the Pareto optimal state standard, you can make "good" and "bad" judgments for any change in the state of resource allocation: if the change in the state of a given resource configuration makes at least one person's state better without making any The state of a person becomes worse. This state is called Pareto improvement.

Pareto Standard

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In the allocation of resources, if at least one person thinks that plan A is better than plan B, and no one thinks that A is worse than B, it is also considered that A is better than B from a social point of view. This is called

First, it assumes that the rights of every member of the society are the same. It is not the case if one harms one and benefits others.

If at least one person thinks that A is better (or worse) than B, and no one thinks that A is better (or better) than B, then from a social point of view, there are also A who is better (or worse) than B. If both people think that there is no difference between A and B, from a social point of view, there is also no difference between A and B. This is

Victor Pareto (July 15, 1848-August 19, 1923), Italian economist, sociologist, economics,

Victor Pareto

Sociology and ethics have made many important contributions, especially in the study of income distribution and the analysis of personal choices. He proposed the concept of Pareto optimality and used the indifference curve to help develop the field of individual economics. His theory influenced the development of Mussolini and Italian fascism.

Pareto was famous for observing that 80% of Italy's 20% of the population owns 80% of the property, which was later generalized by Joseph Juran and others as the Pareto Rule (20/80 Rule) and later as the Pareto Distribution the concept of.

The Pareto Index is a measure of the degree of uneven income distribution, see Gini Coefficient.

Pareto's father, Genoese Marche Raphael Pareto, seems to be a typical product of the Italian Revival Movement in the first half of the 19th century. Giuseppe Mazzini (1805-1872) Italy Leader of the Democratic Republican Party in the National Liberation Movement (Renaissance Movement). He joined the Coal Burning Party, was arrested, and was expelled. Founded in Marseille, France in 1831. Participated in the Italian Revolution in 1848. One of the leaders of politics. In 1860, he supported Garibaldi s expedition to Sicily and Naples, and proposed the establishment of the republic, but it failed. Questions.Editor's note) probably more for national reasons than for social reasonshe is the uncompromising enemy of "all governments that hinder Italy's move towards national unification", and it is here A revolutionary in one sense and not in the other. So he went into exile, fled to Paris, and married a French wife. The hero of this article was born there. If General Galeni once described himself as "French but also Italian", then Wilfredo Pareto could also describe himself as "Italian but also French". He was brought back to Italy for school education in 1858 and received a PhD in engineering in 1869. He immediately worked in engineering and industrial management, and was promoted to general manager of the Italian steel company after several transfersshould be the chairman until 1893, he went to the University of Lausanne and was appointed Valla Heir, although a few years ago he could be considered a full-time economist. In this way, he was mainly engaged in economics research from 1892-1912, and later all his work was actually of a sociological nature. In 1906 he resigned as a professor and retired to his home on the shore of Lake Geneva. In his vigorous and fruitful old age, he became "the lone thinker of Celini."

First of all, the theorists will notice that because of his training in engineeringand he seems to have formed a theoretical point of viewthe mathematical knowledge he has acquired in his early years has reached the expert level ( I cannot say exactly how high this level is .Pareto needs Volterra to tell him. Xdx + Ydy expression often has an infinite number of integration factors, and when it has more than two variables, such factors do not need to exist. I do not know that a real expert can No ignore this.). Secondly, it is worth noting that he is already an extraordinary economist. He is fully familiar with industrial reality. In a sense, this is in accordance with the methods available to college economists, civil servants and politicians. The level of familiarity and proficiency gained is very different. However, thirdly, it was because of his strong interest in the economic and general policies of the time that he was almost an economist before he started his creative work. Comment on one. Francisco Ferrara was still well-known at the time, and the theoretical structure that liberals praised uncritically remained uncontested. Ferrara's work, and especially the famous preface for Classical Economics published in The Economist's Library, has taught Pareto a profound influence that is no less than or even more than the college curriculum of Pareto's school days . Pareto's study of Valla's work originated from the advice of Mafeo Pantaleoni.

None of the above facts fully explain Pareto's social and political views, or his attitude to the real issues of that era and Italy. I never believe that his performance is as easily understood as a pond that can be easily drained. However, the influence of noblemanship on him is more than that of ordinary people, and I believe that everyone who knows him will agree with this, especially this background makes him unable to become a spiritual brother with people in real life and cannot become Fully accepted members of various groups. It also prevented him from establishing emotional connections with the products of bourgeois ideas, such as the twin brothers known as "democracy" and "capitalism." The role of this background is to make him have enough economic income to live on-at first it was barely enough, but later he became quite wealthy ( This is because he inherited a legacy, not because he served as general manager in his early years. )-Makes him more isolated, because this provides Pareto with the conditions to isolate himself.

In this context, his classical knowledge played a similar role. This does not refer to the part of classical knowledge that he shared with everyone who was educated in his contemporaries, but to the part of his classical theories that he formed after relentlessly studying Greek and Roman classics after many sleepless nights. The ancient world was a museum, not a laboratory for applied sciences. He was too convinced that the wisdom accumulated there would inevitably be far away from anyone living in 1890 or 1920. Participation in the country's policy and political debates left him completely isolated, so much so that he had decided to move to Switzerland before accepting an invitation from the University of Lausanne. Isolation had an effect on his irritable temper-it was only in his old age that the family harmony brought about by his second marriage made him better-and his irritable temperament was essentially intolerant of loneliness.

But why did he leave his homeland with extreme anger? He loved her from the bottom of his heart. The new life of the motherland was not only what he longed for, but also what he saw with his own eyes. Fair observers are likely to raise this issue, because it seems to such observers that the situation in the new nation-state was not too bad during the 30 years before Pás left the homeland. In addition to promoting economic growth and liberation from the financial chaos at a fairly rapid rate-to apologize to our Keynesians-the country's first steps were to implement social legislation and successfully build Italy into what was then called One of the powers. From this perspective, our observers will pay great respect to regimes like Agostino De Pretti. And given the difficulties that new nation-states face in the start-up phase, observers will forgive those less pleasant scenarios. But Pareto did not show any forgiveness. All he saw was incompetence and corruption. He fought against a trojan-like government with just outrage, and at that time he became a recognized ultra-liberal-meaning in the 19th century an uncompromising advocate of laissez-faire-and there Among the German New Dealers of the period, he helped create the impression that marginal utility was merely used to oppose the evil tricks of the reformers. ( Therefore, German critics accepted his Lecture on Political Economy. In fact, the book rarely contains content that can be interpreted differently. But it contains the view that the advantages of pure competition as asserted here It has no effect on the actual economic process, because pure competition has not actually prevailed.) This may be all about Pareto's attitude to economic policy issues and the profound traces he left in scientific writing before 1900 Content. But even then, there was something in his ultra-liberal mind that was directly opposed to the dogma and slogans of official liberalism. He is indeed an anti-state interventionist, but for political reasons, not purely economic reasons: unlike classical British economists, he does not oppose government activity itself, but opposes parliamentary democratic governments , A government opposed to the kind of parliamentary democracy that British classical economists enthusiastically supported. From this point of view, this type of laissez-faire has an extension meaning, which is completely different from the British-style laissez-faire. As long as we recognize this, the others are easy to understand.

At the end of the 19th century and the first 20 years of this century, more and more French and Italians began to express dissatisfaction, from simply expressing disappointment, to developing ways of changing parliamentary democracy and its consequences in France and Italy. Expresses strong aversion. There are many people with such emotions, such as E. Fage and G. Sorell, and they do not belong to any party. Analyzing these emotions is not the purpose of this article, let alone judge them.

He attributed all the turmoil in these years to the weakness of the decadent bourgeois political system. The Roman historian may think of a scheme used by the Senate of the Roman Republic: In response to emergencies, the Senate often ordered the officials to appoint an official with virtually unlimited power, albeit temporary power, That dictator. Archon should take care not to harm national interests. But there is no such clause in the Italian constitution, and even if it does, there will be no benefit. Therefore, the dictator must appoint himself. Pareto has never transcended this line, nor has it transcended the line in favour of Mussolini's achievements in restoring order. In order to flaunt himself, Mussolini conferred a senator position on a man who has always promoted moderation and advocated press freedom and academic freedom. ( See the life and writings of Wilfredo Pareto), pp. 182-194. ) But until his death, Pareto refused to believe in this "ism", just as he refused to believe in any other doctrine. From a traditional perspective in the Anglo-American world, there is no need to judge his actions-any of his actions or emotions.