tailieunhanh - Tài liệu trung cấp môn Kinh tế vi mô bằng tiếng Anh - Phần 34

Tài liệu tham khảo Tài liệu trung cấp môn Kinh tế vi mô bằng tiếng Anh gồm 41 phần giúp sinh viên khoa kinh tế học tốt môn Kinh tế vi mô. Tài liệu này là phần 34 giới thiệu về " Phúc lợi - Welfare " | CHAPTER 3 3 WELFARE Up until now we have focused on considerations of Pareto efficiency in evaluating economic allocations. But there are other important considerations. It must be remembered that Pareto efficiency has nothing to say about the distribution of welfare across people giving everything to one person will typically be Pareto efficient. But the rest of us might not consider this a reasonable allocation. In this chapter we will investigate some techniques that can be used to formalize ideas related to the distribution of welfare. Pareto efficiency is in itself a desirable goal if there is some way to make some group of people better off without hurting other people why not do it But there will usually be many Pareto efficient allocations how can society choose among them The major focus of this chapter will be the idea of a welfare function which provides a way to add together different consumers utilities. More generally a welfare function provides a way to rank different distributions of utility among consumers. Before we investigate the implications of this concept it is worthwhile considering just how one might go about adding together the individual consumers preferences to construct some kind of social preferences. 614 WELFARE Ch. 33 Aggregation of Preferences Let us return to our early discussion of consumer preferences. As usual we will assume that these preferences are transitive. Originally we thought of a consumer s preferences as being defined over his own bundle of goods but now we want to expand on that concept and think of each consumer as having preferences over the entire allocation of goods among the consumers. Of course this includes the possibility that the consumer might not care about what other people have just as we had originally assumed. Let us use the symbol x to denote a particular allocation- a description of what every individual gets of every good. Then given two allocations x and y each individual i can say whether or

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