Chapter 4
The Social Welfare Function in Policy Analysis
Abstract
Chapter 4 begins with two attempts to apply the social welfare function: Atkinson's formulation of social welfare as a function of individuals' incomes which he calculates using government survey data on personal income and Jorgenson's parameterization of consumers' utility functions from econometric estimates of their expenditures. The chapter concludes with Dardanoni's analysis of the connection between social welfare and social mobility.
Keywords
Aversion to inequality; Circulation mobility; Generalized Lorenz dominance; Gini coefficient; Hicks compensating variation (HCV); Hicks equivalent variation (HEV); Index of inequality; Lorenz curve; Okun's leaky bucket; Second-best analysis; ...Get Public Finance, 3rd Edition now with the O’Reilly learning platform.
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