EYAL ZAMIR and BARAK MEDINA
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195372168
- eISBN:
- 9780199776078
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195372168.003.01
- Subject:
- Law, Philosophy of Law
This chapter presents welfare economics and its consequentialist nature. It first discusses the main features of positive and normative economic analysis and the meaning of “consequentialism.” It ...
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This chapter presents welfare economics and its consequentialist nature. It first discusses the main features of positive and normative economic analysis and the meaning of “consequentialism.” It then analyzes the deontological critique of consequentialism, specifically consequentialism's lack of constraints on attaining the best outcomes. It critically examines various attempts at defending consequentialism in general, and welfare economics in particular, against this critique. It concludes that all of the attempts to downplay, deny, or circumvent the deontological critique are doomed to failure. The responses that come closest to actually addressing the critique do so by endorsing deontological constraints (and options) on the factoral level. They imply that agents and policy-makers should only strive to attain the overall best outcomes subject to constraints and that agents sometimes have options not to attain the best outcomes.Less
This chapter presents welfare economics and its consequentialist nature. It first discusses the main features of positive and normative economic analysis and the meaning of “consequentialism.” It then analyzes the deontological critique of consequentialism, specifically consequentialism's lack of constraints on attaining the best outcomes. It critically examines various attempts at defending consequentialism in general, and welfare economics in particular, against this critique. It concludes that all of the attempts to downplay, deny, or circumvent the deontological critique are doomed to failure. The responses that come closest to actually addressing the critique do so by endorsing deontological constraints (and options) on the factoral level. They imply that agents and policy-makers should only strive to attain the overall best outcomes subject to constraints and that agents sometimes have options not to attain the best outcomes.
Jie W Weiss and David J Weiss
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780195322989
- eISBN:
- 9780199869206
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195322989.003.0001
- Subject:
- Psychology, Cognitive Psychology
This chapter reviews theoretical literature on the economic theory of decision making and the rapidly increasing number of psychological experiments (performed by both psychologists and economists) ...
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This chapter reviews theoretical literature on the economic theory of decision making and the rapidly increasing number of psychological experiments (performed by both psychologists and economists) that are relevant to it. The review is divided into five sections: the theory of riskless choices, the application of the theory of riskless choices to welfare economics, the theory of risky choices, transitivity in decision making, and the theory of games and of statistical decision functions.Less
This chapter reviews theoretical literature on the economic theory of decision making and the rapidly increasing number of psychological experiments (performed by both psychologists and economists) that are relevant to it. The review is divided into five sections: the theory of riskless choices, the application of the theory of riskless choices to welfare economics, the theory of risky choices, transitivity in decision making, and the theory of games and of statistical decision functions.
Brett M. Frischmann
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199895656
- eISBN:
- 9780199933280
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199895656.003.0003
- Subject:
- Law, Environmental and Energy Law
This chapter provides an overview of the traditional microeconomic analysis of infrastructure. There are two primary microeconomic perspectives on infrastructure: one that is grounded in public ...
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This chapter provides an overview of the traditional microeconomic analysis of infrastructure. There are two primary microeconomic perspectives on infrastructure: one that is grounded in public welfare economics and emphasizes the public goods attributes of infrastructure, and another that is grounded in regulatory economics and emphasizes the potential natural monopoly attributes of infrastructure industries. Both perspectives identify potential market failures that may justify some form of government intervention. Neither tradition focuses on infrastructure exclusively. Yet the traditions converge in the infrastructure context.Less
This chapter provides an overview of the traditional microeconomic analysis of infrastructure. There are two primary microeconomic perspectives on infrastructure: one that is grounded in public welfare economics and emphasizes the public goods attributes of infrastructure, and another that is grounded in regulatory economics and emphasizes the potential natural monopoly attributes of infrastructure industries. Both perspectives identify potential market failures that may justify some form of government intervention. Neither tradition focuses on infrastructure exclusively. Yet the traditions converge in the infrastructure context.
Kaushik Basu and Ravi Kanbur
- Published in print:
- 2008
- Published Online:
- May 2009
- ISBN:
- 9780199239115
- eISBN:
- 9780191716935
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199239115.003.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The Introduction outlines the Amartya Sen's career starting in the UK at the London School of Economics and then at Oxford. It also briefly mentions his time at Harvard and Cambridge. The chapter ...
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The Introduction outlines the Amartya Sen's career starting in the UK at the London School of Economics and then at Oxford. It also briefly mentions his time at Harvard and Cambridge. The chapter discusses how he became interested in welfare economics during all this time. It then goes on to outline the content in this volume and the subsequent volume. Less
The Introduction outlines the Amartya Sen's career starting in the UK at the London School of Economics and then at Oxford. It also briefly mentions his time at Harvard and Cambridge. The chapter discusses how he became interested in welfare economics during all this time. It then goes on to outline the content in this volume and the subsequent volume.
David Colander and Craig Freedman
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780691179209
- eISBN:
- 9780691184050
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691179209.003.0006
- Subject:
- Business and Management, Business History
This chapter explores Chicago's interaction with the mainstream of economics that conditioned its emergence. The catalyst to the postwar change was the mainstream adoption of welfare economics, which ...
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This chapter explores Chicago's interaction with the mainstream of economics that conditioned its emergence. The catalyst to the postwar change was the mainstream adoption of welfare economics, which drew policy implications directly from economic theory. Composing a new approach, it directly specified what the “optimal” policy should be. This measure of decisiveness was in stark contrast to Classical Liberal methodology. For a Classical Liberal economist, policy did not follow directly from scientific economic theory. Instead, economic science and theory provided a useful tool that shed light on policy problems, but, on its own, had no immediate policy implications. These consequences could only be determined once one considered all the issues, not just a subset covered by economic theory. As a result, policy had to be deliberately separated from science.Less
This chapter explores Chicago's interaction with the mainstream of economics that conditioned its emergence. The catalyst to the postwar change was the mainstream adoption of welfare economics, which drew policy implications directly from economic theory. Composing a new approach, it directly specified what the “optimal” policy should be. This measure of decisiveness was in stark contrast to Classical Liberal methodology. For a Classical Liberal economist, policy did not follow directly from scientific economic theory. Instead, economic science and theory provided a useful tool that shed light on policy problems, but, on its own, had no immediate policy implications. These consequences could only be determined once one considered all the issues, not just a subset covered by economic theory. As a result, policy had to be deliberately separated from science.
Raaj K. Sah and Joseph E. Stiglitz
- Published in print:
- 2002
- Published Online:
- January 2005
- ISBN:
- 9780199253579
- eISBN:
- 9780191601682
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253579.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
One of the contributions of this book is to use and develop the principles of modern public finance for the analysis of LDCs (less developed countries). This is done by borrowing from two ...
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One of the contributions of this book is to use and develop the principles of modern public finance for the analysis of LDCs (less developed countries). This is done by borrowing from two intellectual traditions: that relating to public finance, and that relating to development economics. This chapter briefly reviews the four major strands in public finance literature that form the background to the study. These are: general-equilibrium analysis; Pigouvian welfare economics and optimal taxation; the New Welfare Economics (which says that interpersonal utility comparisons are not meaningful, so the utilitarian approach to adding up utilities is nonsense, and one allocation can only be said to be better than another when the first was a Pareto-improvement over the second); and the New New Welfare Economics, which borrows from the previous three strands, and seeks to analyse the scope of available tax instruments, and to take into account and explain market imperfections. This last approach is the one mainly used in the book to approach applied welfare economics for LDCs; various aspects of the approach are discussed.Less
One of the contributions of this book is to use and develop the principles of modern public finance for the analysis of LDCs (less developed countries). This is done by borrowing from two intellectual traditions: that relating to public finance, and that relating to development economics. This chapter briefly reviews the four major strands in public finance literature that form the background to the study. These are: general-equilibrium analysis; Pigouvian welfare economics and optimal taxation; the New Welfare Economics (which says that interpersonal utility comparisons are not meaningful, so the utilitarian approach to adding up utilities is nonsense, and one allocation can only be said to be better than another when the first was a Pareto-improvement over the second); and the New New Welfare Economics, which borrows from the previous three strands, and seeks to analyse the scope of available tax instruments, and to take into account and explain market imperfections. This last approach is the one mainly used in the book to approach applied welfare economics for LDCs; various aspects of the approach are discussed.
Amartya Sen
- Published in print:
- 1973
- Published Online:
- November 2003
- ISBN:
- 9780198281931
- eISBN:
- 9780191715815
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198281935.003.0001
- Subject:
- Economics and Finance, Public and Welfare
The usefulness of the main schools of welfare economics (old and new) in measuring inequality is analysed. It is noted that the literature on Pareto optimality avoids distributional judgements ...
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The usefulness of the main schools of welfare economics (old and new) in measuring inequality is analysed. It is noted that the literature on Pareto optimality avoids distributional judgements altogether, and that the standard social welfare functions approach also fails to provide a framework for distributional discussions because of its concentration on individual orderings only. Utilitarianism (the dominant faith of ‘old’ welfare economics), is too concerned with the welfare sum to be concerned with the problem of distribution and can produce strongly anti‐egalitarian results. Hence, the use of welfare economics for measuring inequality is rejected.Less
The usefulness of the main schools of welfare economics (old and new) in measuring inequality is analysed. It is noted that the literature on Pareto optimality avoids distributional judgements altogether, and that the standard social welfare functions approach also fails to provide a framework for distributional discussions because of its concentration on individual orderings only. Utilitarianism (the dominant faith of ‘old’ welfare economics), is too concerned with the welfare sum to be concerned with the problem of distribution and can produce strongly anti‐egalitarian results. Hence, the use of welfare economics for measuring inequality is rejected.
Ernesto Screpanti and Stefano Zamagni
- Published in print:
- 2005
- Published Online:
- October 2005
- ISBN:
- 9780199279142
- eISBN:
- 9780191602887
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199279144.001.0001
- Subject:
- Economics and Finance, History of Economic Thought
Provides a comprehensive and analytical overview of the development of economic theory from its beginnings, at the end of the Middle Ages, up to contemporary contributions. Traditional theories are ...
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Provides a comprehensive and analytical overview of the development of economic theory from its beginnings, at the end of the Middle Ages, up to contemporary contributions. Traditional theories are presented as living matter and modern theories as part of a historical process and not as established truths. In this way, the book avoids the dangerous dichotomy between the 'pure' historians of thought, who dedicate themselves exclusively to studying 'facts', and the 'pure' theorists, who are interested only in the evolution of the logical structure of theories. An unconventionally large amount of space is reserved for the thought of the last 50 years of the twentieth century, for more than 50% of scientific knowledge has been produced in this time span. The book is not directed to a specialist public nor solely to a student audience. It aims to reach the educated person who has an interest in understanding the context in which economic ideas were formed.The second edition contains several changes and additions. Among them: a look at the ‘civil economy’ perspective in Humanism and Renaissance; an interpretation of Adam Smith as an institutionalist; a hint at the social ontology of Karl Marx; a new treatment of post-Keynesian and new Keynesian approaches; a final chapter on contemporary institutionalist thought in the light of globalization and postmodernism.Less
Provides a comprehensive and analytical overview of the development of economic theory from its beginnings, at the end of the Middle Ages, up to contemporary contributions. Traditional theories are presented as living matter and modern theories as part of a historical process and not as established truths. In this way, the book avoids the dangerous dichotomy between the 'pure' historians of thought, who dedicate themselves exclusively to studying 'facts', and the 'pure' theorists, who are interested only in the evolution of the logical structure of theories. An unconventionally large amount of space is reserved for the thought of the last 50 years of the twentieth century, for more than 50% of scientific knowledge has been produced in this time span. The book is not directed to a specialist public nor solely to a student audience. It aims to reach the educated person who has an interest in understanding the context in which economic ideas were formed.
The second edition contains several changes and additions. Among them: a look at the ‘civil economy’ perspective in Humanism and Renaissance; an interpretation of Adam Smith as an institutionalist; a hint at the social ontology of Karl Marx; a new treatment of post-Keynesian and new Keynesian approaches; a final chapter on contemporary institutionalist thought in the light of globalization and postmodernism.
Agnar Sandmo
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199278558
- eISBN:
- 9780191601590
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199278555.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The taxation of externalities is the subject of this first of seven chapters that examine potential sources of development funding. It considers the possible role of environmental taxes for economic ...
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The taxation of externalities is the subject of this first of seven chapters that examine potential sources of development funding. It considers the possible role of environmental taxes for economic development. The chapter starts with a review of the welfare economics theory of environmental taxation in a single closed economy (analytical details are provided in an appendix A). The different sections then discuss alternatives to taxes as instruments of environmental policy, considering both fixed and transferable quotas; review the double dividend issue; consider the extent to which distributional concerns should be reflected in the design of environmental policy; take up some special problems in the application of environmental externalities to developing economies; extend the analysis from the single country case to the case of global externalities, where each individual country is affected by the environmental pollution of all other countries (the discussion is with specific reference to the carbon tax, and a formal analysis in the context of a two‐country model is given in a second appendix); consider the political economy of global environmental taxes, by comparing alternative tax designs with regard to the equity‐efficiency trade‐off; discuss some practical problems of tax collection; and evaluate the revenue potential of environmental taxes with special reference to the carbon tax.Less
The taxation of externalities is the subject of this first of seven chapters that examine potential sources of development funding. It considers the possible role of environmental taxes for economic development. The chapter starts with a review of the welfare economics theory of environmental taxation in a single closed economy (analytical details are provided in an appendix A). The different sections then discuss alternatives to taxes as instruments of environmental policy, considering both fixed and transferable quotas; review the double dividend issue; consider the extent to which distributional concerns should be reflected in the design of environmental policy; take up some special problems in the application of environmental externalities to developing economies; extend the analysis from the single country case to the case of global externalities, where each individual country is affected by the environmental pollution of all other countries (the discussion is with specific reference to the carbon tax, and a formal analysis in the context of a two‐country model is given in a second appendix); consider the political economy of global environmental taxes, by comparing alternative tax designs with regard to the equity‐efficiency trade‐off; discuss some practical problems of tax collection; and evaluate the revenue potential of environmental taxes with special reference to the carbon tax.
Amartya Sen
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198289289
- eISBN:
- 9780191596896
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198289286.003.0007
- Subject:
- Economics and Finance, Public and Welfare
After a preamble on the choice of space (variable) and evaluative purpose, the matter of whether a person's position in terms of achievement should be judged positively (as level of achievement ...
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After a preamble on the choice of space (variable) and evaluative purpose, the matter of whether a person's position in terms of achievement should be judged positively (as level of achievement reached) or negatively (in terms of shortfall compared with possible maximal achievement) is addressed. It is noted that the welfare economics literature on inequality has typically overlooked human diversity in terms of this maximum potential. The rest of the chapter examines and contrasts the evaluation of inequality in terms of (1) justice and (2) welfare.Less
After a preamble on the choice of space (variable) and evaluative purpose, the matter of whether a person's position in terms of achievement should be judged positively (as level of achievement reached) or negatively (in terms of shortfall compared with possible maximal achievement) is addressed. It is noted that the welfare economics literature on inequality has typically overlooked human diversity in terms of this maximum potential. The rest of the chapter examines and contrasts the evaluation of inequality in terms of (1) justice and (2) welfare.
A. B. Atkinson
- Published in print:
- 2008
- Published Online:
- May 2009
- ISBN:
- 9780199239115
- eISBN:
- 9780191716935
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199239115.003.0027
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Giving for development provides an interesting case study in the application of welfare economics. Giving for development is modest in total amount, but it is one of the few direct ways in which ...
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Giving for development provides an interesting case study in the application of welfare economics. Giving for development is modest in total amount, but it is one of the few direct ways in which individuals reveal information relevant to the properties of the social welfare function to be applied to global redistribution. Where individuals themselves are willing to make transfers, how should this be taken into account in the social welfare function? The chapter first examines individual motives for giving, turning to the specific purpose of development in the second section. It then considers how far these motives are welfarist. The fourth section examines the implications for the social welfare function of individual altruism towards people in poor countries. If individuals are non-welfarist in their concerns, should the state continue to adopt a welfarist social welfare function? The final section addresses explicitly the geographical dimension, and the fact that the social welfare is a national social welfare function, which has to take into account the limited ‘sphere of control’ of national governments.Less
Giving for development provides an interesting case study in the application of welfare economics. Giving for development is modest in total amount, but it is one of the few direct ways in which individuals reveal information relevant to the properties of the social welfare function to be applied to global redistribution. Where individuals themselves are willing to make transfers, how should this be taken into account in the social welfare function? The chapter first examines individual motives for giving, turning to the specific purpose of development in the second section. It then considers how far these motives are welfarist. The fourth section examines the implications for the social welfare function of individual altruism towards people in poor countries. If individuals are non-welfarist in their concerns, should the state continue to adopt a welfarist social welfare function? The final section addresses explicitly the geographical dimension, and the fact that the social welfare is a national social welfare function, which has to take into account the limited ‘sphere of control’ of national governments.
Ernesto Screpanti and Stefano Zamagni
- Published in print:
- 2005
- Published Online:
- October 2005
- ISBN:
- 9780199279142
- eISBN:
- 9780191602887
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199279144.003.0007
- Subject:
- Economics and Finance, History of Economic Thought
Traces the rapid diffusion of the neoclassical paradigm in Europe and the USA. In particular, considers the birth of the 'national schools' during la belle époque: the Marshallian School in England; ...
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Traces the rapid diffusion of the neoclassical paradigm in Europe and the USA. In particular, considers the birth of the 'national schools' during la belle époque: the Marshallian School in England; the Swedish; the Austrian; the American; the Italian—each characterized by some peculiar elements of specificity.Less
Traces the rapid diffusion of the neoclassical paradigm in Europe and the USA. In particular, considers the birth of the 'national schools' during la belle époque: the Marshallian School in England; the Swedish; the Austrian; the American; the Italian—each characterized by some peculiar elements of specificity.
James A. Mirrlees
- Published in print:
- 2006
- Published Online:
- October 2011
- ISBN:
- 9780198295211
- eISBN:
- 9780191685095
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295211.003.0003
- Subject:
- Economics and Finance, Public and Welfare, Development, Growth, and Environmental
This chapter discusses the information a government may have about consumers and vice versa. The concept of welfare economics is used as a mode of discussing alternative government policies and as ...
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This chapter discusses the information a government may have about consumers and vice versa. The concept of welfare economics is used as a mode of discussing alternative government policies and as part of the discussion on alternative systems of government. The chapter also includes remarks on preferences regarding uncertainty.Less
This chapter discusses the information a government may have about consumers and vice versa. The concept of welfare economics is used as a mode of discussing alternative government policies and as part of the discussion on alternative systems of government. The chapter also includes remarks on preferences regarding uncertainty.
Kumaraswamy Velupillai
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198295273
- eISBN:
- 9780191596988
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198295278.003.0009
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Three topics are discussed as pointers towards issues at the frontiers of computable economics: effectivizing the fundamental theorems of welfare economics; computable production theory; the ...
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Three topics are discussed as pointers towards issues at the frontiers of computable economics: effectivizing the fundamental theorems of welfare economics; computable production theory; the effectivity of tâtonnement. Furthermore, in the appendix, an attempt is made to analyse the notion of finding a formally simplest theory of economic fluctuations. Some discursive notes on multiple equilibria in economic models and their possible generation due to various formal uncomputabilities is also presented.Less
Three topics are discussed as pointers towards issues at the frontiers of computable economics: effectivizing the fundamental theorems of welfare economics; computable production theory; the effectivity of tâtonnement. Furthermore, in the appendix, an attempt is made to analyse the notion of finding a formally simplest theory of economic fluctuations. Some discursive notes on multiple equilibria in economic models and their possible generation due to various formal uncomputabilities is also presented.
Ian Kumekawa
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780691163482
- eISBN:
- 9781400885206
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691163482.003.0004
- Subject:
- Economics and Finance, Economic History
This chapter takes a look at Pigou's welfare economics, particularly through his most famous work, Wealth and Welfare, which began circulating in 1912. This book marked the formal start of Pigou's ...
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This chapter takes a look at Pigou's welfare economics, particularly through his most famous work, Wealth and Welfare, which began circulating in 1912. This book marked the formal start of Pigou's work on the economics of welfare and, arguably, the birth of the field of welfare economics. Pigou's welfare economics was concerned with analyzing and correcting imperfections in the market that resulted in suboptimal levels of societal wellbeing. This premise—the idea that the market was not self-regulating—meant that much of the ameliorative potential of Pigou's welfare economics depended on the actions of a competent administrator located outside the market. Amid a surging public respect for science and a burgeoning pressure for government to take a more active role in the economy, Pigou's work not only made a major theoretical contribution, it was also able to provide a rigorous justification for state action at a propitious time.Less
This chapter takes a look at Pigou's welfare economics, particularly through his most famous work, Wealth and Welfare, which began circulating in 1912. This book marked the formal start of Pigou's work on the economics of welfare and, arguably, the birth of the field of welfare economics. Pigou's welfare economics was concerned with analyzing and correcting imperfections in the market that resulted in suboptimal levels of societal wellbeing. This premise—the idea that the market was not self-regulating—meant that much of the ameliorative potential of Pigou's welfare economics depended on the actions of a competent administrator located outside the market. Amid a surging public respect for science and a burgeoning pressure for government to take a more active role in the economy, Pigou's work not only made a major theoretical contribution, it was also able to provide a rigorous justification for state action at a propitious time.
Kaushik Basu
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198296713
- eISBN:
- 9780191595943
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296711.003.0009
- Subject:
- Economics and Finance, Microeconomics
This chapter discusses some preliminaries of welfare economics, i.e., the meaning of welfare and interpersonal comparisons. It focuses on the informational feasibility of some ethical systems. It ...
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This chapter discusses some preliminaries of welfare economics, i.e., the meaning of welfare and interpersonal comparisons. It focuses on the informational feasibility of some ethical systems. It highlights an influential method of interpersonal comparison, propounded by the Chicago approach and widely used in labour economics and evaluating institutions, that suffers from the problem of inconsistency.Less
This chapter discusses some preliminaries of welfare economics, i.e., the meaning of welfare and interpersonal comparisons. It focuses on the informational feasibility of some ethical systems. It highlights an influential method of interpersonal comparison, propounded by the Chicago approach and widely used in labour economics and evaluating institutions, that suffers from the problem of inconsistency.
Amanda Kay McVety
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199796915
- eISBN:
- 9780199933266
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199796915.003.0003
- Subject:
- History, American History: 20th Century, World Modern History
In the opening decades of the twentieth century, economists challenged racialized conceptions of progress with new theories of economic growth that were (as had been their eighteenth-century ...
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In the opening decades of the twentieth century, economists challenged racialized conceptions of progress with new theories of economic growth that were (as had been their eighteenth-century predecessors) universally applicable. The key innovation was the creation of the concept of “the economy”—an entity that could be studied and, ideally, manipulated into growth. Relying on newly available statistics of incomes around the world, economists began creating models of growth and arguing for the viability of making economic assistance a factor in international relations. Progress could be available to all, if only the right policy tools were put into place. These ideas gained ground in Washington, D.C., during World War II, when policymakers began discussing the possibility of manipulating the global economy into growth in order to secure the stability of the American economy.Less
In the opening decades of the twentieth century, economists challenged racialized conceptions of progress with new theories of economic growth that were (as had been their eighteenth-century predecessors) universally applicable. The key innovation was the creation of the concept of “the economy”—an entity that could be studied and, ideally, manipulated into growth. Relying on newly available statistics of incomes around the world, economists began creating models of growth and arguing for the viability of making economic assistance a factor in international relations. Progress could be available to all, if only the right policy tools were put into place. These ideas gained ground in Washington, D.C., during World War II, when policymakers began discussing the possibility of manipulating the global economy into growth in order to secure the stability of the American economy.
- Published in print:
- 2011
- Published Online:
- June 2013
- ISBN:
- 9780804768948
- eISBN:
- 9780804777636
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804768948.003.0005
- Subject:
- Economics and Finance, History of Economic Thought
This chapter examines the state's interactions with the individual by looking at Immanuel Kant's concepts of dignity and autonomy. It shows why Kant is widely considered one of the founders of ...
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This chapter examines the state's interactions with the individual by looking at Immanuel Kant's concepts of dignity and autonomy. It shows why Kant is widely considered one of the founders of classical liberalism (or economic libertarianism) on the basis of his argument for a minimal, non-interventionist role for the state. However, his position is not dependent on any cynicism about the efficacy of government, or on general opposition to a state per se. Kant argues that the state is a necessary component of the maximization of outer freedom among persons, but limits the legitimate use of state power to prohibiting this coercion. Thus, Kant does not favor positive, interventionist state action for promoting any consequentialist measures of social well-being. Such measures are the domain of welfare economics and one of its primary applications, the economic approach to law. This chapter first discusses the link between welfare economics and consequentialism, before turning to the ethics of efficiency and its implications for the field of law and economics.Less
This chapter examines the state's interactions with the individual by looking at Immanuel Kant's concepts of dignity and autonomy. It shows why Kant is widely considered one of the founders of classical liberalism (or economic libertarianism) on the basis of his argument for a minimal, non-interventionist role for the state. However, his position is not dependent on any cynicism about the efficacy of government, or on general opposition to a state per se. Kant argues that the state is a necessary component of the maximization of outer freedom among persons, but limits the legitimate use of state power to prohibiting this coercion. Thus, Kant does not favor positive, interventionist state action for promoting any consequentialist measures of social well-being. Such measures are the domain of welfare economics and one of its primary applications, the economic approach to law. This chapter first discusses the link between welfare economics and consequentialism, before turning to the ethics of efficiency and its implications for the field of law and economics.
Ha-Joon Chang and Robert Rowthorn
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198289845
- eISBN:
- 9780191684777
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198289845.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter deals with the role that the state may assume. According to the authors, there are four state interventions in the market: New Political Economy, welfare economics, institutional ...
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This chapter deals with the role that the state may assume. According to the authors, there are four state interventions in the market: New Political Economy, welfare economics, institutional economics and Austrian economics. The state has its different roles according to these views which varies from full state intervention up to a state-intervention-free market. The authors suggest that the state must possess all the strength of the argument offered by these views. To sum it all, the state must be a good and ultimate entrepreneur and conflict manager at the same time. Too much intervention on the part of the state may harm the market while on the other, too much leniency on the side of the state may make the state too weak or too corrupt.Less
This chapter deals with the role that the state may assume. According to the authors, there are four state interventions in the market: New Political Economy, welfare economics, institutional economics and Austrian economics. The state has its different roles according to these views which varies from full state intervention up to a state-intervention-free market. The authors suggest that the state must possess all the strength of the argument offered by these views. To sum it all, the state must be a good and ultimate entrepreneur and conflict manager at the same time. Too much intervention on the part of the state may harm the market while on the other, too much leniency on the side of the state may make the state too weak or too corrupt.
James A. Mirrlees
- Published in print:
- 2006
- Published Online:
- October 2011
- ISBN:
- 9780198295211
- eISBN:
- 9780191685095
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295211.003.0006
- Subject:
- Economics and Finance, Public and Welfare, Development, Growth, and Environmental
This chapter discusses the different ‘fundamental’ theorems of welfare economics. One theorem states that a competitive equilibrium is Pareto-efficient and that a welfare optimum can be implemented ...
More
This chapter discusses the different ‘fundamental’ theorems of welfare economics. One theorem states that a competitive equilibrium is Pareto-efficient and that a welfare optimum can be implemented as a competitive equilibrium. The second theorem, on the other hand, assumes that there are no economies of scale in production, and that the aggregate production set is convex.Less
This chapter discusses the different ‘fundamental’ theorems of welfare economics. One theorem states that a competitive equilibrium is Pareto-efficient and that a welfare optimum can be implemented as a competitive equilibrium. The second theorem, on the other hand, assumes that there are no economies of scale in production, and that the aggregate production set is convex.
