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Vilfredo Pareto

The Italian sociologist, political theorist, and economist Vilfredo Pareto (1848-1923) is chiefly known for his influential theory of ruling elites and for his equally influential theory that political behavior is essentially irrational.

Vilfredo Pareto was born in Paris on July 15, 1848. His father, an aristocratic Genoese, had gone into political exile in France about 1835 because he supported the Mazzinian republican movement. He returned to Piedmont in 1855, where he worked as a civil engineer for the government. Vilfredo followed his father's profession after graduating from the Polytechnic Institute at Turin in 1869. He worked as director of the Rome Railway Company until 1874, when he secured an appointment as managing director of an iron-producing company with offices in Florence.

In 1889 Pareto married a Russian girl, Dina Bakunin, resigned his post with the iron company for a consultancy, and for the next 3 years wrote and spoke against the protectionist policy of the Italian government domestically and its military policies abroad. His reputation as a rebellious activist led to an intimate acquaintance with the economist Maffeo Pantaleoni. This association led to Pareto's interest in pure economics, a field in which he quickly became proficient and well known. His reputation gained him an appointment in 1893 to the prestigious post of professor of political economy at Lausanne University.

In 1894 Pareto published his first noted work, Cours d'économie politique, which evoked a great deal of commentary from other economists. Two years later he inherited a small fortune from an uncle, a windfall which caused him to think of retiring to pursue research. At this point he began to develop the theories for which he is most famous, elitism and irrationalism in politics.

In his own earlier political career Pareto had been an ardent activist in behalf of democracy and free trade, as had been his father before him. The reasons for the marked change in his political outlook have been much disputed, ranging from the Neo-Freudian analytical account, to the interpretation which stresses certain developments in his own career, to the explanation which maintains that, quite simply, he changed because of the results of his own vast studies. By the time his next book, The Manual of Political Economy, was published in 1906, his ideas on elites and irrationalism were already well developed. The following year he resigned from his chair of political economy at Lausanne to devote all his energies to researching his theories.

Pareto retired to his villa at Celigny, where he lived a solitary existence except for his 18 Angora cats (the villa was named "Villa Angora") and his friend Jane Régis, a woman 30 years younger than he who had joined his household in 1901, when his wife left him. In 1907 he began writing his most famous and quite influential work, The Treatise on Sociology; he completed it in 1912 and published it in 1916. (The work was published in English translation as The Mind and Society in 1935 in a four-volume edition.) In 1923 he secured a divorce from his wife and married Jane Régis. Later the same year he died.

Pareto's theory of elitism is sometimes simplistically explained on the basis of his aristocratic heritage. However, as recent scholarship has shown, throughout his life and in his published works he often expressed extreme distaste with the titled Italian aristocracy, just as he was anti-socialist, anti-government-interventionist, anti-colonialist, anti-militarist, anti-racialist, and "anti-anti-Semitic." Attracted to fascism when it first came to power in Italy, he later opposed it. He is perhaps best described as an iconoclastic individualist.

The Mind and Society is at one and the same time a debunking of Marxism and of the bourgeois state. Pareto's method of investigation is inductive or positivistic, contemptuously rejecting natural law, metaphysics, and deductive reasoning. On the basis of very extensive historical and empirical studies, Pareto maintained that in reality and inevitably the true form of government in any state is never a monarchy, hereditary aristocracy, or democracy but that always all social organizations, including states, are governed by a ruling elite. This ruling elite, which has greater vitality and usefulness than other elites, dominates them until it in turn is overturned by a more powerful elite - Pareto's theory of "the circulation of elites." Political behavior itself, both of the masses and of the elites, is basically emotional and nonrational. The function of reason is to justify past behavior or to show the way to future goals, which are determined not by reason but by emotional wants.

Further Reading

Elitism is today, in one variety or another, the leading approach to the analysis of empirical political behavior by political scientists. Consequently, the literature on the subject, and on Pareto, is enormous. A good general introduction is James Burnham, The Machiavellians: Defenders of Freedom (1943). Pareto's name is almost always coupled with Gaetano Mosca's. For an approach which stresses the difference, even antagonism, between the two, see the introduction to James H. Meisel, ed., Pareto and Mosca (1965); the first nine essays in this work discuss various aspects of Pareto's life and work. See also George C. Homans and Charles P. Curtis, An Introduction to Pareto (1934), and Franz Borkenau, Pareto (1936).

Additional Sources

Powers, Charles H., Vilfredo Pareto, Newbury Park, Calif.: Sage Publications, 1987.

Vilfredo Pareto, (1848-1923), Aldershot, Hants, England; Brookfield, Vt., USA: E. Elgar Pub., 1992.

 
 
Political Dictionary: Vilfredo Pareto

(1848-1923) Italian sociologist and economist. His sociology (The Mind and Society, 1935) was once highly influential, but now only his arguments about the inevitable domination of political structure by elites survive. His work as an economist, by contrast, is much more influential than in his own day. He has given his name to a number of linked concepts which must be carefully distinguished:

(1) The Pareto condition. If a move from state of affairs A to another (B) leaves nobody feeling worse off than before and at least one person feeling better off, the move satisfies the Pareto condition (or criterion or principle), and the move itself is called a Pareto improvement or just Paretian. B is then Pareto-superior to A, which is Pareto-inferior to B.
(2) Pareto-optimality. If there is a state of affairs C such that no (further) Pareto improvements can be made, C is Pareto-optimal. That is, it is a situation in which nobody can be made to feel better off except by making at least one person feel worse off. The set of all Pareto optima is called the Pareto frontier.

 The various Paretian concepts are central to welfare economics and social choice, for both technical and ideological reasons. A choice procedure which ranked some A above some B, even though everybody prefers B to A, violates the Pareto principle even in its weakest possible formulation and therefore seems perverse; nevertheless, some apparently reasonable voting procedures do just that. This strange fact is used in the proof of Arrow's impossibility theorem. Ideologically, welfare economists have seized on the Pareto principle because it has seemed value-free. Arguments about redistribution of income and wealth are necessarily value-laden, so it is regarded as uncontroversial to accept all and only Pareto improvements as improvements in welfare. This is linked to a defence of free trade, free markets, and libertarianism. A trade in which P offers money to Q in exchange for R is Paretian: P would rather have the goods than the money and Q would rather have the money than the goods. After the trade, they both feel better off, whether R happens to be an apple, a quantity of shares, or the rent of Q's property for a while.

Critics of the claim that the Pareto concepts are value-free argue variously:

(1) that market transactions may impose external costs on others and/or corrupt the morality of the participants;
(2) that Paretians slide too easily from saying ‘at the Pareto frontier, only transactions which make at least one person feel worse off can be made’ to saying ‘at the Pareto frontier no further exchanges are admissible’, which rules out any form of redistribution and regards all points on the Pareto frontier as equally justifiable; and
(3) that Paretianism and liberalism are actually incompatible at the deepest level (A. Sen, ‘The impossibility of a Paretian liberal’, Journal of Political Economy, 1970).

 

(born July 15, 1848, Paris, France — died Aug. 19, 1923, Geneva, Switz.) Italian economist and sociologist. Educated at the University of Turin, he worked as an engineer and later served as a director of a large Italian railway. He taught at the University of Lausanne from 1893. His law of income distribution used a complex mathematical formula to trace historical patterns in the distribution of wealth. In 1906 he laid the foundation of modern welfare economics with his Pareto Optimum, which stated that a society's resources are not optimally allocated as long as it is possible to make at least one person better off while keeping others as well off as before.

For more information on Vilfredo Pareto, visit Britannica.com.

 
Columbia Encyclopedia: Pareto, Vilfredo
(vēlfrĕ'dō pärĕ') , 1848–1923, Italian economist and sociologist, b. Paris, of an exiled noble family that returned to Italy in 1858. He studied mathematics and engineering in Turin and worked as an engineer for many years, meanwhile becoming increasingly interested in social and economic problems. His economic writings won him (1893) a professorship of political economy at the Univ. of Lausanne. His notable contribution in applying mathematics to economic theory is found especially in Cours d'économie politique (1896–97). In his sociological studies he sought to differentiate the rational and nonrational factors in social action. He used that concept as the basis for his theory of the cyclical development and fall of governing elite groups. One of the originators of welfare economics, he defined total welfare as an improvement in a person's condition that was not achieved at any other person's expense. His chief work in sociology, Trattato di sociologia generale (1916), has been translated as Mind and Society (4 vol., 1935).

Bibliography

See G. C. Homans and C. P. Curtis, Jr., An Introduction to Pareto: His Sociology (1934, repr. 1970); study by F. Borkenau (1936); J. H. Meisel, ed., Pareto and Mosca (1965); R. Cirillo, The Economics of Vilfredo Pareto (1979); J. Freund, Pareto (tr. 1988).

 
Quotes By: Vilfredo Pareto

Quotes:

"Give me a fruitful error anytime, full of seeds, bursting with its own corrections."

 
Wikipedia: Vilfredo Pareto
Vilfredo Pareto
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Vilfredo Pareto

Vilfredo Federico Damaso Pareto [vil'fre:do pa're:to] (July 15, 1848, ParisAugust 19, 1923, Geneva) was a French-Italian sociologist, economist and philosopher. He made several important contributions especially in the study of income distribution and in the analysis of individuals' choices. He introduced the concept of Pareto efficiency and helped develop the field of microeconomics.

Brief biography

Vilfredo Pareto was born of an exiled noble family in 1848 in Paris, the centre of the popular revolutions of that year. His father was an Italian civil engineer, his mother a French woman. His family went to Italy in 1858. In his childhood, Pareto lived in a middle-class environment, receiving a high standard of education. In 1867 he earned a degree in mathematical sciences and in 1870 a doctorate in engineering from what is now the Polytechnic University of Turin. His dissertation was entitled "The Fundamental Principles of Equilibrium in Solid Bodies". His later interest in equilibrium analysis in economics and sociology can be traced back to this paper.

For some years after graduation, he worked as a civil engineer, first for the state-owned Italian Railway Company and later in private industry. Meanwhile he became increasingly interested in social and economic problems. In 1886 he became a lecturer on economics and management at the University of Florence. His stay in Florence was marked by political activity, much of it fuelled by his own frustrations with government regulators. In 1889, after the death of his parents, Pareto changed his lifestyle, quitting his job and marrying a Russian, Alessandrina Bakunin. He began writing numerous polemical articles against the government, which caused him much trouble.

In 1893 he was appointed as a lecturer in economics at the University of Lausanne in Switzerland where he remained for the rest of his life. In 1906 he made the famous observation that twenty percent of the population owned eighty percent of the property in Italy, later generalised by Joseph M. Juran and others into the so-called Pareto principle (also termed the 80-20 rule) and generalised further to the concept of a Pareto distribution.

He died in Geneva, Switzerland, in 1923.

Economic rules

A few economic rules are based on his work :

  • The Pareto index is a measure of the inequality of income distribution.
  • The Pareto chart is a special type of histogram, used to view causes of a problem in order of severity from largest to smallest. It is a statistical tool that graphically demonstrates the Pareto principle or the 80-20 rule.

More biography, Pareto's works, and legacy

In his Trattato di Sociologia Generale (1916, rev. French trans. 1917) published in English under the title The Mind and Society (1935), he put forward the first social cycle theory in sociology.

He is famous for saying "history is a graveyard of aristocracies".

A great deal of Talcott Parsons theory of society is based on his works. Parsons aimed at a sociology canon made of Durkheim, Weber and Pareto.

See also

External links

be-x-old:Вільфрэда Парэта


 
 

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Political Dictionary. The Concise Oxford Dictionary of Politics. Copyright © 1996, 2003 by Oxford University Press. All rights reserved.  Read more
Britannica Concise Encyclopedia. Britannica Concise Encyclopedia. © 2006 Encyclopædia Britannica, Inc. All rights reserved.  Read more
Columbia Encyclopedia. The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/  Read more
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Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Vilfredo Pareto" Read more

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