![]() Somewhat related to the Pareto principle is the Pareto efficiency, which states that in the allocation of resources it is impossible to make any one individual better off without making at least one individual worse off, which was also found in Pareto’s research works. Juran generalized the principle through saying that 80 percent of the effects come from 20 percent of the causes. The engineer Joseph Juran later found Pareto’s publications and made these findings famous as the Pareto principle. As a result, he noticed that 20 percent of the population owned about 80 percent of Italy’s total property. During his research, he began observing the property distribution among the population in Italy. In 1896, Pareto discovered that the distribution of income does not follow a normal distribution rather, he recognized that it is usually skewed to the right. There he became a co-founder of welfare economics. There he succeeded Léon Walras, who had a strong mathematical orientation. In 1893 he was appointed to the chair of economics at the University of Lausanne. Pareto’s interests in economy evolved early and Pareto became an economics lecturer in Florence and was known to be a very political person, often irritated with the government’s economical regulations. His later interest in equilibrium analysis in economics and sociology can be traced back to this paper. Pareto worked first for a railway company, then for an ironworks. His dissertation was entitled “ The Fundamental Principles of Equilibrium in Solid Bodies“. Pareto was well educated and attended the Polytechnic University of Turin, becoming an engineer in 1870. The Pareto family moved back to Northern Italy in 1858. His name Vilfredo Fritz was given to him in allusion to the German Revolution of 1848/49. His parents were Marquis Raffaele Pareto, a noble Italian emigrant and comrade-in-arms of Mazzini from a Genoese merchant family, and the Frenchwoman Marie Méténier. ![]() Vilfredo “Fritz” Pareto was born in Paris, France. – Vilfredo Pareto, Manual of Political Economy (1927) Vilfredo Pareto Background ![]() “The assertion that men are objectively equal is so absurd that it does not even merit being refuted.” The Pareto principle was named after him and built on observations of his such as that 80% of the land in Italy was owned by 20% of the population. He made several important contributions to economics, particularly in the study of income distribution and in the analysis of individuals’ choices. On July 15, 1848, Italian engineer, sociologist, economist, political scientist and philosopher Vilfredo Federico Damaso Pareto was born. ![]()
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