Social Welfare Under Perfect Competition

Social Welfare Under Perfect Competition To achieve maximum social welfare the allocation  of resources would be considered efficient if marginal ate of substitution between any two commodities for a consumer is equal to the marginal rate of  transformation between...

MARKET STRUCTURE AND SOCIAL WELFARE

MARKET STRUCTURE AND SOCIAL WELFARE In The Pascal sense if a policy change makes at least one individual better without making anyone rose off II is said to maxi miss social welfare Let. us see how this social optimum can be attained under  different market structures...

Scitovsky Compensation Principle

Scitovsky Compensation Principle We may discuss this principle in two parts vi the Tsiolkovsky Paradox and Tchaikovsky Double Cr criterion Tchaikovsky pointed out a contradiction Waldorf Hicks Compensation Principle Both Wald. and Hicks   considered a movement from...

A FURTHER NOTE ON COMPENSATION PRINCIPLES

A FURTHER NOTE ON COMPENSATION PRINCIPLES The Social Welfare Function and. theory of Compensation  Principles are sometimes treated as attempts  rehabilitate welfare economics and together are referred  to as New Welfare Economics. This was  necessary  because of wide...

OBSTACLES TO WELFARE MAXIMIZATION

OBSTACLES TO WELFARE MAXIMIZATION If maximum welfare is to be attained optimum allocation of factors of production is essential. This   allocation must he in keeping with the consumer’s preferences. For this purpose there must prevail perfect competition But in...

Socialist Ideology

Socialist Ideology Welfare economics provides strong support  to socialist ideology. Only a socialist dictatorship can bring   bout conditions of production exchange and distribution which may be conducive to welfare   maximization Free enterprise economy where...