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 criticism of Pavlovian and Partisan analyses. Pareto held that if any policy hang benefited some people without harming others, it will be assumed that social welfare has increased. But in the era world the economic situations are not so unambiguous that any policy change at benefit some people without harming others Pareto appears to have deliberately confined his analysis o unambiguous changes in order to avoid value judgement and inter personal utility comparisons alder Hicks and Tsiolkovsky. introduced the theory of Compensation Principles as a reformulated criterion on Partisan foundations. The theory of compensation principles states
A FURTHER NOTE ON COMPENSATION PRINCIPLES
