Recommended readings (Machine generated): Paul A. Samuelson (1954), 'The Pure Theory of Public Expenditure', Review of Economics and Statistics, 36 (4), November, 387-9 -- Francis M. Bator (1958), 'The Anatomy of Market Failure', Quarterly Journal of Economics, LXXII (3), August, 351-79 --...

"The powerful theorems of welfare economics operate under a range of assumptions. Two of the most significant are the existence of competitive markets for all goods and services - including futures markets - and the unbounded rationality of all economic agents who act independently to maximize...