Welfare Economics (Volume 1 and 2)

Author: (British) 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. Welfare economics primarily starts from certain value judgments, establishing theoretical systems based on predetermined social goals; builds welfare concepts based on the cardinal or ordinal theory of marginal utility; and formulates economic policy proposals based on social objectives and welfare theory. This book focuses on discussing fields such as external economy theory, the theory of second-best, the doctrine of relative welfare, the theory of trade-offs between fairness and efficiency, and macro-welfare theory in welfare economics. These "new" theories attempt to explain that resources can be reasonably allocated through government intervention in prices and quantities.