Welfare Economics: An Attempt Towards a More Comprehensive Analysis

Author: (Australia) Huang Youguang
Publisher:
Publish Date: 2005-10-01
Features: This book not only covers traditional welfare economics topics such as Paretooptimality, welfare standards, consumer surplus, social choice, externalities, and public goods, but also delves into advanced and innovative topics, such as the quasi-Pareto criterion, the diamond effect on consumer surplus, and the "Third Best Theory" by economists who overestimate the cost of public spending. Its unique conclusion, "one is one," provides a powerful simplification scheme for public policy-making, particularly for cost-benefit analysis. By applying the Yang-Huang framework of professional division of labor to study increasing returns and shifting welfare economics from preference improvement to welfare or happiness, the author elevates welfare economics to a more comprehensive analytical level, re-establishing a necessary foundation for formulating public policy.