Non-Welfarist Paretian Methods of Policy Assessment
8 Pages Posted: 31 Oct 2001
Date Written: October 2001
In a recent article, Louis Kaplow and Steven Shavell claim that any non-welfarist method of policy assessment violates the Pareto principle. This comment presents a simple example of a Paretian method of policy assessment that refutes their claim. Unless we make questionable assumptions, such as axioms regarding independence and continuity of the social welfare function, the Pareto principle does not imply that we must make social choices based only on individuals' utilities.
JEL Classification: D60, D63, K00
Suggested Citation: Suggested Citation