# Questions tagged [social-welfare]

Social welfare is a quantitative measure of how good or bad a policy or situation is for a society, overall. It is usually obtained by somehow "aggregating" the utility functions of all the people in that society (e.g. by computing the average utility).

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### Public Good Provision and median voting principle

This is a question that came in one of the previous year's entrance test to a master's program in a reputed institution in my country. I am also attaching how I tackled the problem in each part of the ...
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### Arrow’s Impossibility Theorem Proof - Unicity of "dictator"

I have a hard time understanding completely Arrow’s Impossibility Theorem proof, even the very pedagogical one by Geanakoplos, that can be found for instance here : https://users.ssc.wisc.edu/~dquint/...
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### A question in social choice and preference aggregation

Let $I = \{1, 2, 3\}$ denote the set of individuals and $X = [a, b]\subset \mathbb{R}^+$ with $a, b \in \mathbb{R}^+$ and $a < b$, be the set of alternatives. For each $i\in I$ and some $p_i\in X$ ...
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### Is my understanding of Arrow's dictatorship correct? The dictator is free to update her preference and the social choice will always follow her taste

Suppose $R$ is a social ordering, $f$ is the social choice function, and $R_i$ is an individual preference. A profile of individual preference is $<R_i>$. $f(<R_i>)=R$ Suppose $i=1$ is ...
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### How do I derive a SWF from mean income and an inequality index?

If one makes welfarist assumptions about the general good, and further assumes that SWFs can be fully characterized by the mean income and an inequality index, then it is possible to recover the ...
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### Why doesn't the government subsidize firms on the condition that they lower prices?

Lets pretend that all production is contingent on fixed cost capital, the good or service made from this capital is sold at a price that means that demand is below what the capital has the capacity to ...
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### To what extent does national income measure social well being [closed]

National income does not measure social well being. GDP is used to measure national income
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### Deriving a welfare function

I saw this in a paper (however, I cannot derive it): We define the growth rate of consumption as $g_{C, s} \equiv \frac{C_s}{C_{s-1}}$ and use $C_t=\left(\prod_{s=1}^t g_{C, s}\right) C_0$ to rewrite ...
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### Is it possible that pensions (public or private) be actual money saved and “sent” into the future, instead of borrowed from future generations? [closed]

Is it conceivable, from a theoretical point of view, that what we pay today for our future pensions is actually invested somewhere so that we can be 100% certain that those assets will be there for us,...
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### Is there a measure of social inequality?

A measure of economic inequality in a population is the gini coefficient. Is there such a measure of social inequality as well? The social rights include labor market, the source of income, health ...
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### Consumer Welfare vertical differentiation [SOLVED]

Suppose consumers have the standard Tirole's utility $U_A = \theta q + \alpha X_A - P$ if they buy product A and $U_0 = 0$ if they don't buy this product (where $X_A$ is the actual demand of product A)...
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### Universal Limited Income

I am new here. Please pardon me for my naive question. However, I am a mathematician, so feel free to use any mathematics to model a toy situation. I would like to understand what would happen if ...
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### Are interest rate hikes regressive?

Central banks are currently hiking interest rates to reduce aggregate demand. How is this reduction in spending distributed across the population? Specifically, what would be the shape of a graph of ...
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### Is there a progressive response to inflation?

The conventional response to inflation is to increase central bank interest rates. This seems regressive. Is there a progressive method to stop inflation? In concrete terms, central bank interest rate ...
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### What value does a worker whose job could be automated provide to society?

Has anyone calculated the global benefit of non-workers on government assistance and found their contribution to be less than the assistance they were provided? I'm looking for scientific studies ...
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### How to empirically measure the underlying utility function for a 'max EU" SWF? Stated/revealed preferences over uncertain lotteries, or?

Direct answers, as well as pointers to the best literature and textbook treatments, as well as the names of key researchers, are appreciated. Suppose we are considering policies and transfers that ...
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### How *should* weigh income/consumption at different income levels (esp. to the very poor vs poor) ... perhaps in a 'social welfare function'?

What is the best analysis/literature/text, that gives a theoretical justification for approaches that can be used in practice, for How we should weight income/consumption at different income levels (...
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### What is the problem with this opportunity cost example?

The "stand-up economist" Yoram Bauman used the concept of opportunity cost to make the following joke: [S]omebody offers you a choice between a Snickers bar and a package of M&Ms. ...
1 vote
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### Axiom of Minimal Liberalism & Sen's Theorem of Paretial Liberal

Suppose that a person believes that all humans are guaranteed a set of rights that cannot be taken from them in any situation or circumstance (for example, the right to marry a person of your choice, ...
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### Question about Social Welfare Function and Social Profile

What are the meanings of a social welfare function and social profile? How are they related?
1 vote
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### Why the ageing population creates problems for a country to fund old-age social protection program and what solution do we have?

Senior citizens are considered as one of the vulnerable groups and therefore, they need some social protection during their old age. However, we also face the worldwide trend of an ageing population. ...
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### Question about the "No Dictator" Criterion in Arrow's Impossibility Theorem

I have a question about Arrow's impossibility theorem. I'm not sure I understand exactly what is meant by the "no dictator" criterion. Does the presence of a "dictator" mean that across all possible ...
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### Why would a politician sollicit foreign investors to come and buy real estate?

In the Netherlands we have a shortage of affordable housing. Especially in urban areas, especially housing in the price ranges affordable for young people and middle and low incomes. This is pretty ...
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### How much to earn to break-even throughout life [closed]

Firstly, my apologies if this isn't the right forum for this - I couldn't spot a better one! We are all born, pay taxes and die. Depending on where we live, those taxes will (hopefully) be used to ...
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### Non-axiomatic definition of well-being

I first wanted to ask this on philosophy@SE but, on a second thought, decided this might be a better place. If we defined a general policy's objective being "to maximize well being and minimize ...
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### Social conflicts in economic growth models

I'm highly interested in theories and models which explain how do social conflicts influence economic growth. What papers on the topic can you recommend? I was searching for some seminal and most ...
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### Set of utilitarian weights

I am wondering if there are literature which studies specific properties of the set of utilitarian weights? To be more specific, when we have some axioms that characterize the preference of a social ...
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### Concept of return on investment but for the state instead a firm

So, following a discussion I had today, I have the following question. If we use the return on investment (ROI) to describe the gain of an investment is there a similar concept not for a company but ...
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### Universal Basic Income [closed]

In 2017 some countries have adopted the Universal Basic Income as an alternative to Welfare Payments, my question is, is it economically feasible by governments?
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### Anonymity in social welfare function

Currently reading David Adler's text on distributional weights in benefit-cost analysis (https://scholarship.law.duke.edu/faculty_scholarship/3110/), I cannot manage to fully grasp the definition of ...
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### Is production side (or so called "firms") considered in "social welfare"?

When micro-economists refer to "social welfare" as measure of an outcome of a competitive equilibrium economic model, or "welfare economics" in general, is this taken to include a measure of the ...
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