GATE Working Paper No. 1333
22 Pages Posted: 21 Nov 2013
Date Written: November 20, 2013
This paper presents the Paretian Watershed and the fundamental theorems of welfare economics. It distinguishes the British approach (à la Kaldor-Hicks) from the American approach (à la Bergson-Samuelson) to new welfare economics. It develops the more recent domains of happiness economics, the comparative approach by Amartya Sen, and the theory of fair allocation by Marc Fleurbaey.
Keywords: Welfare economics, Kaldor-Hicks, Social Welfare Function, Pareto, comparative approach, happiness economics, fair allocation
JEL Classification: B2, D6
Suggested Citation: Suggested Citation