Assignment problem

The tinbergen rule, adjustment in the swan diagram, effective market classification, allowing for shocks.

Assignment problem

  • Expenditure changing and expenditure switching: Internal and External Balan ...
  • Expenditure changing and expenditure switching
  • Expenditure changing and expenditure switching: Effects of Expenditure Swit ...
  • Equilibrium exchange rate: New Open Economy Macroeconomic Class of Models
  • Expenditure changing and expenditure switching: Effects of Expenditure Chan ...
  • Marshall-Lerner condition: Importance of the Marshall-Lerner Condition
  • International Monetary Fund conditionality: Analytical Tools
  • J-curve effect: Estimating the J-Curve
  • Mundell-Fleming model: Policy Shocks
  • Comments: (0)
  • Concepts and Principles
  • Models and Theory
  • Institutions and Agreements
  • Policies and Instruments
  • Analysis and Tools
  • Sectors and Special Issues

The Assignment Problem

Cite this chapter.

assignment problem in economics

  • Horst Siebert 3  

213 Accesses

1 Citations

The assignment problem can be understood as the issue how decision rights are allocated to the agents and organizational subunits of a society. In this wide interpretation, the assignment problem refers to three different, albeit related phenomena: i) the allocation of property rights to individuals, i.e. households, and to firms, ii) the allocation of decisions rights to the government (including its subunits) relative to the private sector, and, within the sphere of government, iii) the attribution of policy instruments to economic policy agents. Economic policy agents are the different layers of government, the central bank, and trade unions to name the most important ones. 1 Assigning decisions rights is not only a national problem but refers to international decision rules as well.

We can think of the assignment problem as an optimizing problem in which decision rights are allocated in such a way that a goal function is maximized. In this fundamental issue of institutional economics, the goal function is complex, including values such as individual freedom and equity as well as the economic criterion of efficiency. Phrasing the assignment problem in these terms, I am putting the problem as if we were to reinvent mankind’s institutional arrangements from scratch. This is, of course, only an abstract and a rather theoretical approach. In the real world, the allocation of property rights to agents is given, and the given allocation changes only marginally except for major upheavals as in the shift from communist central planning to the market economy. In the following we look for some principles for the allocation of decision rights.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save.

  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Unable to display preview.  Download preview PDF.

Similar content being viewed by others

assignment problem in economics

Designing Allocation Rules in Economic Problems

assignment problem in economics

Coase Theorem

assignment problem in economics

Introduction

Bergsten, C. F. (1999) America and Europe: Clash of the Titans? Foreign Affairs 76 (2), 20–49.

Article   Google Scholar  

Coase, R. (1960) The Problem of Social Cost. Journal of Law and Economics 3 , 1–44.

Coeuré, B., and J. Pisani-Ferry (2000) The Euro, Yen, and Dollar: Making the Case Against Benign Neglect. In: Kenen, P. B., and A. K. Swoboda (eds.), Reforming the International Monetary and Financial System. International Monetary Fund, Washington, D.C.

Google Scholar  

Furubotn, E. G., and S. Pejovich (1972) Property Rights and Economic Theory. A Survey of Recent Literature. Journal of Economic Literature 10 , 1137–1162.

Kenen, P. (2000) The International Economy. 4th edition. Cambridge: University Press.

Book   Google Scholar  

Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (1967) Stabilität im Wachstum. Stuttgart und Mainz.

Siebert, H. (1993) Principles of the Economic System in the Federal Republic — An Economist’s View. In: Kirchhof, P., and D. P. Kommers (eds.), Germany and its Basic Law. Baden-Baden.

Siebert, H. (1996) Institutionelle Arrangements für die Zuweisung von Opportunitätskosten. In: Immenga, U., W. Möschel, and D. Reuter (Hrsg.), Festschrift für Ernst-Joachim Mestmäcker zum siebzigsten Geburtstag. Nomos, Baden-Baden.

Siebert, H. (1997) Der Verlust des ordnungspolitischen Denkens. Universitas 52 (11), 1021–1029.

Siebert, H. (1999) Improving the World’s Financial Architecture. The Role of the IMF. Kiel Discussion Papers 351. Kiel Institute of World Economics.

Siebert, H. (2000a) Außenwirtschaft. 7th edition. Lucius & Lucius, Stuttgart.

Siebert, H. (2000b) The Case for Benign Neglect. In: Kenen, P. B., and A. K. Swoboda (eds.), Reforming the International Monetary and Financial System. International Monetary Fund, Washington, D.C.

Siebert, H. (2000c) The Japanese Bubble: Some Lessons for International Macroeconomic Policy Coordination. Aussenwirtschaft 55 (2000), 233–250.

Tichy, G. (1999) Konjunkturpolitik: Quantitative Stablisierungspolitik bei Unsicherheit. 4th edition. Springer, Berlin.

Download references

Author information

Authors and affiliations.

President of the Kiel Institute of World Economics, Chair of Theoretical Economics at the University of Kiel, Member of the German Council of Economic Advisers, Germany

Horst Siebert

You can also search for this author in PubMed   Google Scholar

Editor information

Editors and affiliations.

Institut f. Statistik und Mathematische Wirtschaftstheorie, Universität Karlsruhe, Zirkel 2, Rechenzentrum, 76128, Karlsruhe, Germany

Siegfried K. Berninghaus ( Professor Dr. ) ( Professor Dr. )

Fachbereich Wirtschaftswissenschaften VWL/Außenwirtschaft, Universität Osnabrück, Rolandstr. 8, 49069, Osnabrück, Germany

Michael Braulke ( Professor Dr. ) ( Professor Dr. )

Rights and permissions

Reprints and permissions

Copyright information

© 2001 Springer-Verlag Berlin Heidelberg

About this chapter

Siebert, H. (2001). The Assignment Problem. In: Berninghaus, S.K., Braulke, M. (eds) Beiträge zur Mikro- und zur Makroökonomik. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-56606-6_35

Download citation

DOI : https://doi.org/10.1007/978-3-642-56606-6_35

Publisher Name : Springer, Berlin, Heidelberg

Print ISBN : 978-3-642-62679-1

Online ISBN : 978-3-642-56606-6

eBook Packages : Springer Book Archive

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

  • Publish with us

Policies and ethics

  • Find a journal
  • Track your research

Browse Course Material

Course info.

  • Prof. Ricardo Caballero

Departments

As taught in.

  • International Economics
  • Macroeconomics

Learning Resource Types

Principles of macroeconomics, assignments.

assignments solutions
Problem Set 1 ( ) ( )
Problem Set 2 ( ) ( )
Problem Set 3 ( ) ( )
Problem Set 4 ( ) ( )
Problem Set 5 ( ) ( )
Problem Set 6 ( ) ( )

facebook

You are leaving MIT OpenCourseWare

IMAGES

  1. Problem set 3-Education Economics-Assignment

    assignment problem in economics

  2. 1 The basic economic problem

    assignment problem in economics

  3. The Assignment Problem In Economics

    assignment problem in economics

  4. Analysis of an Economics Problem Set Assignment Regarding Development Economics and

    assignment problem in economics

  5. BASIC ECONOMIC PROBLEMS OF EVERY SOCIETY

    assignment problem in economics

  6. PPT

    assignment problem in economics

VIDEO

  1. Assignment problem

  2. September 16, 2021 Assignment problem| Part 2

  3. Assignment Problem ( Brute force method) Design and Analysis of Algorithm

  4. Economics Important Questions (136 to 150)

  5. Economics Important Questions (105 to 120)

  6. TN 11 Economics

COMMENTS

  1. Assignment problem - Wikipedia

    The assignment problem consists of finding, in a weighted bipartite graph, a matching of a given size, in which the sum of weights of the edges is minimum. If the numbers of agents and tasks are equal, then the problem is called balanced assignment. Otherwise, it is called unbalanced assignment. [1] .

  2. The Assignment Problem | SpringerLink

    The assignment problem can be understood as the issue how decision rights are allocated to the agents and organizational subunits of a society. In this wide interpretation, the assignment problem refers to three different, albeit related phenomena: i) the allocation...

  3. Assignment Problems and the Location of Economic Activities

    In the assignment problem, we have that for an optimum allocation a 11 + a 22 >a 12 + a 21 i.e., a 11 a 12 >a 21 a 22: Neither absolute nor comparative advantage is the controlling principle. Basic principle is always opportunity cost in economics. Heckman Koopmans & Beckmann

  4. Assignments | Principles of Microeconomics | Economics | MIT ...

    This section contains the problem sets and solutions for the course.

  5. Assignment problem - World Economics

    The assignment problem concerns the allocation of policy instruments to policy targets in order to improve policy effectiveness. Policy instruments are the variables or procedures that policy authorities directly control.

  6. Assignment Problems and the Location of Economic Activities

    The problem is to find a matching (or assignment to each other) of objects for which the sum of the scores of pairs matched is as high as possible. There are a variety of practical decision problems of which this is an idealization.

  7. The Assignment Problem - Springer

    We can think of the assignment problem as an optimizing problem in which decision rights are allocated in such a way that a goal function is maximized. In this fundamental issue of institutional economics, the goal function is complex, including values such as individual freedom and equity as well as the economic criterion of efficiency.

  8. Assignments | Principles of Macroeconomics | Economics | MIT ...

    Problem Set 5 ( PDF ) ( PDF ) Problem Set 6 ( PDF ) ( PDF ) MIT OpenCourseWare is a web based publication of virtually all MIT course content. OCW is open and available to the world and is a permanent MIT activity.

  9. Notes on “Assignment Problems and the Location of Economic ...

    •In the assignment problem, we have that for an optimum allocation a 11 + a 22 >a 12 + a 21 i.e., a 11 −a 12 >a 21 −a 22. •Neither absolute nor comparative advantage is the controlling principle. •Basic principle is always opportunity cost in economics. Heckman Koopmans & Beckmann

  10. 3.8: Assignment- Problem Set — Economic Thinking

    Click the following link to download the problem set for this module: Economic Thinking Problem Set