Welfare Economics - (Volume 1 and 2)

Author: (English) A.C. Pigou
Publisher:
Publish Date: 2006-09-01
Features: Welfare economics is a branch of economics that evaluates the operation of an economic system from the perspective of welfare or the maximization principle, as proposed by Western economists. Welfare economics primarily starts with certain value judgments, establishing theoretical frameworks based on predetermined social objectives; it develops welfare concepts based on the cardinal or ordinal theory of marginal utility; and formulates economic policy proposals based on social goals and welfare theory. This book focuses on discussing areas such as external economy theory, the theory of second-best, the doctrine of relative welfare, the trade-off between equity and efficiency, and macro-welfare theory in welfare economics. These "new" theories attempt to explain that resource allocation can be achieved rationally through government intervention in prices and quantities.