Nearly all economists who study optimal tax theory use the social welfare function approach, along with the "more equality is better" social welfare criterion
that it implies.
Markus Brunnermeier, Princeton University and NBER; Alp Simsek, Harvard University and NBER; and Wei Xiong, Princeton University and NBER, "A Welfare Criterion
for Models with Distorted Beliefs"
Is that the right welfare criterion
from an economic perspective?
Explicit in all these works is that antitrust agencies face a national welfare criterion
of which foreign producers and consumers are not part; yet consumer surplus (not national welfare) is the stated criterion for many antitrust agencies.
If one disagrees with a policy being advocated, that disagreement necessarily reflects disagreement with the economic model, the welfare criterion
, or assumptions about institutional features of policy.
21) And CBA will, in some (not all) contexts, be both reasonably congruent with the welfare criterion
and significantly easier to implement than that criterion itself In particular, CBA is reasonably congruent with overall well-being where money is equally productive of well-being as between winners and losers.
This paper proposes simple axioms which capture the concept of sustainability, and derives the welfare criterion
which they imply, see also Chichilnisky (1996).
The author's stated goal is to develop, within the bounds of Austrian theory, a welfare criterion
that can be used to judge and possibly improve economic efficiency when market failure, i.
Razin and Loungani analyze how globalization induces monetary authorities, guided by the welfare criterion
of a representative household, to put greater emphasis on reducing the inflation rate than on narrowing output gaps.
To allow the average consumer's preferences to determine the pricing structure faced by all consumers represents a misapplication of the Harberger welfare criterion
2] under the maximin welfare criterion
are plotted against [delta] in Figure 3.
On the other hand she praises Pigou's "nontrivial welfare criterion
which deals with issues concerning both equity and efficiency" [2, 616].