7. Van Parijs proposal for the grant uses the idea that society's technology, institutions and trust...

 

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7. Van Parijs proposal for the grant uses the idea that society's technology, institutions and trust provide the basis for production and its dividend should be equally distributed across individuals. As an analogy, he uses the distribution of land in an island where Crazy and Lazy live and the grant equals the price of the plot of land that each of them can sell in the market. a. Suppose that Crazy works full time and Lazy works only a fraction q of the time and that the production per unit of time equals K where K is the available land. In total the island has one unit of land and is distributed equally across both individuals. Find the individual demand of land and the walrasian equilibrium. Interpret the price of land as a tax on labor. b. What is the difference between technology and land as the "object" of trade in a Walrasian market? What determines market clearing conditions? Is the comparison just? 7. Van Parijs proposal for the grant uses the idea that society's technology, institutions and trust provide the basis for production and its dividend should be equally distributed across individuals. As an analogy, he uses the distribution of land in an island where Crazy and Lazy live and the grant equals the price of the plot of land that each of them can sell in the market. a. Suppose that Crazy works full time and Lazy works only a fraction q of the time and that the production per unit of time equals K where K is the available land. In total the island has one unit of land and is distributed equally across both individuals. Find the individual demand of land and the walrasian equilibrium. Interpret the price of land as a tax on labor. b. What is the difference between technology and land as the "object" of trade in a Walrasian market? What determines market clearing conditions? Is the comparison just?