This is a collective analysis of five major economic theories of welfare. Here each of the theories is explained separately in a brief manner. The diagrammatic representation is also used here to understand the concepts easily. Further an evaluation of each theory has also been provided along with the discussion. This note includes the following five welfare economic theories.
1) Pareto Optimality;
2) Kaldor-Hicks Compensation Criterion;
3) Social Welfare Function of Bergson and Samuelsson;
4) Scitovisky Criterion; and
5) Amartya Sen’s Theory of Welfare.
Inhaltsverzeichnis (Table of Contents)
- Preface
- Introduction
- Theories of Welfare Economics
- Pareto Optimality
- Kaldor-Hicks Compensation Criterion
- Scitovsky Double Criterion
- Social Welfare Function of Bergson and Samuelsson
- Amartya Sen's View on Social Welfare
- Concluding Remarks
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to provide a comprehensive analysis of five major economic theories of welfare, exploring their strengths and weaknesses. Each theory is presented in a concise and accessible manner, with accompanying diagrams to enhance understanding.
- The concept of Pareto Optimality and its limitations
- The Kaldor-Hicks Compensation Criterion and its implications for social welfare
- The Social Welfare Function of Bergson and Samuelsson and its role in interpersonal comparisons of utility
- The Scitovsky Double Criterion and its contribution to welfare analysis
- Amartya Sen's theory of welfare and its focus on multi-dimensional aspects of well-being
Zusammenfassung der Kapitel (Chapter Summaries)
- Preface: This section provides a brief overview of the work, highlighting its focus on five major welfare economic theories and their evaluation.
- Introduction: This chapter introduces the importance of cooperation and trust in society, and the role of welfare economics in maximizing social well-being. It discusses the evolution of modern welfare economics and its focus on resource allocation and normative decision-making.
- Theories of Welfare Economics: This chapter presents a framework for understanding the different perspectives on welfare economics, highlighting the distinction between Pareto-based and Bergson-Samuelsson-based approaches.
- 1) Pareto Optimality: This chapter explores Pareto's concept of welfare as a necessary condition for social well-being. It examines the theory's strengths and limitations, including its lack of scope for value judgments and interpersonal comparisons of utility.
- 2) Kaldor-Hicks Compensation Criterion: This chapter delves into the Kaldor-Hicks compensation criterion, which allows for welfare improvements even if some individuals are worse off, provided that those who gain could hypothetically compensate those who lose.
- 3) Scitovsky Double Criterion: This chapter explores the Scitovsky Double Criterion, which refines the Kaldor-Hicks criterion by introducing a condition that ensures the potential compensation is actually feasible.
- 4) Social Welfare Function of Bergson and Samuelsson: This chapter examines the Social Welfare Function of Bergson and Samuelsson, which allows for interpersonal comparisons of utility based on value judgments and provides a framework for analyzing social welfare in situations where some individuals gain at the expense of others.
- 5) Amartya Sen's View on Social Welfare: This chapter presents Amartya Sen's theory of welfare, which emphasizes the multi-dimensional aspects of well-being, including happiness, freedom, and dignity. It critiques Pareto's focus on utility and argues for a broader understanding of welfare.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this work include Pareto Optimality, Kaldor-Hicks Compensation Criterion, Scitovsky Double Criterion, Social Welfare Function, interpersonal comparisons of utility, value judgments, Amartya Sen's theory of welfare, multi-dimensional well-being, and welfare economics.
- Quote paper
- IRSHAD CV (Author), 2016, Five Theories of Welfare Economics. An Evaluation, Munich, GRIN Verlag, https://www.grin.com/document/336546
