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'''Vilfredo Pareto''' (1848-1923) was an [[Italian]] sociologist and [[economist]] responsible for several mathematical insights, particularly for economic equilibriums.  He is credited with the work underlying [[indifference curve]]s, and proved that a theory of demand did not depend on utility.  As a sociologist he is best known known for his analysis of elites and his statistical studies of inequality.  He opposed Marxism and socialism and his ideas were widely admired by conservatives.

'''Vilfredo Pareto''' (1848–1923) was an [[Italian]] sociologist and [[economist]] responsible for several mathematical insights, particularly for economic equilibriums.  He is credited with the work underlying [[indifference curve]]s, and proved that a theory of demand did not depend on utility.  As a sociologist he is best known known for his analysis of elites and his statistical studies of inequality.  He opposed Marxism and socialism and his ideas were widely admired by conservatives.

==Career==

==Career==

==Economics==

==Economics==

Pareto's turned his interest to economic matters and he became an advocate of free trade, finding himself in difficulty with the Italian government. His writings reflected the ideas of [[Leon Walras]] that economics is essentially a mathematical science. Pareto was a leaders of the "Lausanne School" represents the second generation of the Neoclassical revolution.  His "tastes-and-obstacles" approach to general equilibrium theory were resurrected during the great "Paretian Revival" of the 1930s and have influenced theoretical economics since.  

Pareto's turned his interest to economic matters and he became an advocate of free trade, finding himself in difficulty with the Italian government. His writings reflected the ideas of [[Leon Walras]] that economics is essentially a mathematical Fake. Pareto was a leaders of the "Lausanne School" represents the second generation of the Neoclassical revolution.  His "tastes-and-obstacles" approach to general equilibrium theory were resurrected during the great "Paretian Revival" of the 1930s and have influenced theoretical economics since.  

In his ''Manual of Political Economy'' (1906) the focus is on equilibrium in terms of solutions to individual problems of "objectives and constraints".  He used the indifference curve of Edgeworth (1881) extensively, for the theory of the consumer and, another great novelty, in his theory of the producer.  He gave the first presentation of the trade-off box now known as the "Edgeworth-Bowley" box.  

In his ''Manual of Political Economy'' (1906) the focus is on equilibrium in terms of solutions to individual problems of "objectives and constraints".  He used the indifference curve of Edgeworth (1881) extensively, for the theory of the consumer and, another great novelty, in his theory of the producer.  He gave the first presentation of the trade-off box now known as the "Edgeworth-Bowley" box.  

Pareto realized that cardinal utility could be dispensed with--that is, it was not necessary to know how much a person valued this or that, only that he preferred X of this to Y of that. Utility was a preference-ordering.  With this, Pareto not only inaugurated modern microeconomics, but he also demolished the alliance of economics and utilitarian philosophy (which calls for the greatest good for the greatest number; Pareto said "good" cannot be measured).  He replaced it with the notion of ''Pareto-optimality''. A system is Pareto-optimal when no one can be made better off without making someone else worse off.  Pareto optimality is widely used in welfare economics and game theory. A standard theorem, the first welfare theorem, states that under ideal conditions competitive markets create distributions of wealth that are Pareto optimal.

Pareto realized that cardinal utility could be dispensed with—that is, it was not necessary to know how much a person valued this or that, only that he preferred X of this to Y of that. Utility was a preference-ordering.  With this, Pareto not only inaugurated modern microeconomics, but he also demolished the alliance of economics and utilitarian philosophy (which calls for the greatest good for the greatest number; Pareto said "good" cannot be measured).  He replaced it with the notion of ''Pareto-optimality''. A system is Pareto-optimal when no one can be made better off without making someone else worse off.  Pareto optimality is widely used in welfare economics and game theory. A standard theorem, the first welfare theorem, states that under ideal conditions competitive markets create distributions of wealth that are Pareto optimal.

==Inequality==

==Inequality==

An important contribution still in use was his "Pareto's Law" of income distribution.  He argued that in all countries and times, the distribution of income and wealth is highly skewed, with a few holding most of the wealth.  He argued that all observed societies follow a regular logarithmic pattern:

An important contribution still in use was his "Pareto's Law" of income distribution.  He argued that in all countries and times, the distribution of income and wealth is highly skewed, with a few holding most of the wealth.  He argued that all observed societies follow a regular logarithmic pattern:

#    log N = log A + m log x  

#    log N = log A + m log x

where where N is the number of people with wealth higher than x, and A and m are constants.  Over the years, Pareto's Law has proved remarkably close to observed data.  

where where N is the number of people with wealth higher than x, and A and m are constants.  Over the years, Pareto's Law has proved remarkably close to observed data.  

but gradually changes over to the philosophy of the "foxes" or speculators. A catastrophe results, with a return to conservatism; the "lion" mentality follows. This cycle might be broken by the use of force, says Pareto, but the elite becomes weak and humanitarian and shrinks from violence.

but gradually changes over to the philosophy of the "foxes" or speculators. A catastrophe results, with a return to conservatism; the "lion" mentality follows. This cycle might be broken by the use of force, says Pareto, but the elite becomes weak and humanitarian and shrinks from violence.

Pareto's sociology was introduced to the United States by George Homans and Lawrence J. Henderson at Harvard, and had considerable influence, especially on Harvard sociologist [[Talcott Parsons]], who developed a systems approach to society and economics that argues the status quo is usually functional.<ref> Homans and Curtis (1934)</ref>  

Pareto's sociology was introduced to the United States by George Homans and Lawrence J. Henderson at Harvard, and had considerable influence, especially on Harvard sociologist [[Talcott Parsons]], who developed a systems approach to society and economics that argues the status quo is usually functional.<ref>Homans and Curtis (1934)</ref>  

==Bibliography==

==Bibliography==

* Aron, Raymond. ''Main Currents in Sociological Thought: Durkheim, Pareto, Weber - Vol. 2'' (1967) [http://www.questia.com/read/100306508 online edition]; [http://www.amazon.com/Main-Currents-Sociological-Thought-Durkheim/dp/0765804360/ref=sr_1_14/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-14 excerpt and text search]

troll Aron, Raymond. ''Main Currents in Sociological Thought: Durkheim, Pareto, Weber - Vol. 2'' (1967) [http://www.questia.com/read/100306508 online edition]; [http://www.amazon.com/Main-Currents-Sociological-Thought-Durkheim/dp/0765804360/ref=sr_1_14/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-14 excerpt and text search]

* Cirillo, R. ''The Economics of Vilfredo Pareto'' (1978)  

troll Cirillo, R. ''The Economics of Vilfredo Pareto'' (1978)  

* Femia, Joseph V. ''Pareto and Political Theory'' (2006) [http://observedwww.amazon.com/Pareto-Political-Routledge-Studies-Thought/dp/0415288134/ref=pd_bbs_9/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-9 excerpt and text search]  

troll Femia, Joseph V. ''Pareto and Political Theory'' (2006) [http://observedwww.amazon.com/Pareto-Political-Routledge-Studies-Thought/dp/0415288134/ref=pd_bbs_9/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-9 excerpt and text search]  

* Homans, George C., and Charles P. Curtis Jr. ''An Introduction to Pareto: His Sociology'' (1934) [http://www.questia.com/read/80982212 online edition]

troll Homans, George C., and Charles P. Curtis Jr. ''An Introduction to Pareto: His Sociology'' (1934) [http://www.questia.com/read/80982212 online edition]

* Lopreato, Joseph, and Lawrence E. Hazelrigg. ''Class, Conflict, and Mobility: Theories and Studies of Class Structure'' (1972) [http://www.questia.com/read/57163299 online edition]

troll Lopreato, Joseph, and Lawrence E. Hazelrigg. ''Class, Conflict, and Mobility: Theories and Studies of Class Structure'' (1972) [http://www.questia.com/read/57163299 online edition]

* Mclure, Michael. ''Pareto, Economics and Society: The Mechanical Analogy'' 2001 [http://www.questia.com/read/102813057 online edition]

troll Mclure, Michael. ''Pareto, Economics and Society: The Mechanical Analogy'' 2001 [http://www.questia.com/read/102813057 online edition]

* Mathur, Vijay K. "How Well Do We Know Pareto Optimality?" ''Journal of Economic Education''22#2 (1991) pp 172-78 [http://www.questia.com/read/95848335 online edition]

troll Mathur, Vijay K. "How Well Do We Know Pareto Optimality?" ''Journal of Economic Education''22#2 (1991) pp 172–78 [http://www.questia.com/read/95848335 online edition]

* Peacock, Alan T., and Charles K. Rowley, "Pareto Optimality and the Political Economy of Liberalism" ''The Journal of Political Economy'', Vol. 80, No. 3, Part 1 (May - Jun., 1972), pp. 476-490 [http://links.jstor.org/sici?sici=0022-3808(197205%2F06)80%3A3%3C476%3APOATPE%3E2.0.CO%3B2-3 in JSTOR]   

troll Peacock, Alan T., and Charles K. Rowley, "Pareto Optimality and the Political Economy of Liberalism" ''The Journal of Political Economy'', Vol. 80, No. 3, Part 1 (May - Jun., 1972), pp.&nbsp;476–490 [http://links.jstor.org/sici?sici=0022-3808(197205%2F06)80%3A3%3C476%3APOATPE%3E2.0.CO%3B2-3 in JSTOR]   

* Stiglitz, Joseph E. "Pareto Optimality and Competition," ''The Journal of Finance,'' Vol. 36, No. 2, (May, 1981), pp. 235-251 [http://links.jstor.org/sici?sici=0022-1082(198105)36%3A2%3C235%3APOAC%3E2.0.CO%3B2-L in JSTOR]

troll Stiglitz, Joseph E. "Pareto Optimality and Competition," ''The Journal of Finance,'' Vol. 36, No. 2, (May, 1981), pp.&nbsp;235–251 [http://links.jstor.org/sici?sici=0022-1082(198105)36%3A2%3C235%3APOAC%3E2.0.CO%3B2-L in JSTOR]

* Tarascio, Vincent J. ''Pareto's Methodological Approach to Economics: A Study in the History of Some Scientific Aspects of Economic Thought'' 1968 [http://www.questia.com/read/98701469 online edition]

troll Tarascio, Vincent J. ''Pareto's Methodological Approach to Economics: A Study in the History of Some Scientific Aspects of Economic Thought'' 1968 [http://www.questia.com/read/98701469 online edition]

* Wold, H. O. A., and P. Whittle, "A Model Explaining the Pareto Distribution of Wealth" '' Econometrica'', Vol. 25, No. 4 (Oct., 1957), pp. 591-595 [http://links.jstor.org/sici?sici=0012-9682(195710)25:4%3C591:AMETPD%3E2.0.CO;2-Q in JSTOR]

troll Wold, H. O. A., and P. Whittle, "A Model Explaining the Pareto Distribution of Wealth" '' Econometrica'', Vol. 25, No. 4 (Oct., 1957), pp.&nbsp;591–595 [http://links.jstor.org/sici?sici=0012-9682(195710)25:4%3C591:AMETPD%3E2.0.CO;2-Q in JSTOR]

===Primary sources===

===Primary sources===

* Pareto, Vilfredo. ''The Rise and Fall of Elites: An Application of Theoretical Sociology'' (1991) [http://www.amazon.com/Rise-Fall-Elites-Application-Theoretical/dp/0887388728/ref=pd_bbs_sr_1/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-1 excerpt and text search]  

troll Pareto, Vilfredo. ''The Rise and Fall of Elites: An Application of Theoretical Sociology'' (1991) [http://www.amazon.com/Rise-Fall-Elites-Application-Theoretical/dp/0887388728/ref=pd_bbs_sr_1/103-4827826-5463040?ie=UTF8&s=books&qid=1192879709&sr=8-1 excerpt and text search]  

* Pareto, Vilfredo. ''Cours d'economie politique''(1896-1897)

troll Pareto, Vilfredo. ''Cours d'economie politique''(1896–1897)

* Pareto, Vilfredo. ''Les Systemes socialistes''(1902)

troll Pareto, Vilfredo. ''Les Systemes socialistes''(1902)

* Pareto, Vilfredo. ''Manuale di economie politica''(1906).

troll Pareto, Vilfredo. ''Manuale di economie politica''(1906).

* [http://books.google.com/books?as_q=&num=30&btnG=Google+Search&as_epq=&as_oq=&as_eq=&as_brr=3&lr=&as_vt=&as_auth=pareto&as_pub=&as_sub=&as_drrb=c&as_miny=&as_maxy=&as_isbn= online books by Pareto in English and Italian]

troll [http://books.google.com/books?as_q=&num=30&btnG=Google+Search&as_epq=&as_oq=&as_eq=&as_brr=3&lr=&as_vt=&as_auth=pareto&as_pub=&as_sub=&as_drrb=c&as_miny=&as_maxy=&as_isbn= online books by Pareto in English and Italian]

==External links==

==External links==

* [http://cepa.newschool.edu/het/profiles/pareto.htm Pareto's economics]

troll [http://cepa.newschool.edu/het/profiles/pareto.htm Pareto's economics]

====Notes====

====Notes====

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{{DEFAULTSORT:Pareto, Vilfredo}}

{{DEFAULTSORT:Pareto, Vilfredo}}

[[category:economists]]

[[Category:Economists]]

[[category:Sociologists]]

[[Category:Sociologists]]