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Extended Sympathy
Extended sympathy in welfare economics refers to interpersonal value judgments of the form that social state ''x'' for person ''A'' is ranked better than, worse than, or as good as social state ''y'' for person ''B'' (Arrow, 1963, pp. 114–15). (For example: it would, perhaps, be preferable to lower a wealthy person's income in order to increase a poorer person's income by the same amount.) Here any characteristics that define each person (skills, aptitudes, etc.) are distinguished from the rest of the social state and put on a par with conventional measures of wealth insofar as they affect an extended sympathy judgment. In his seminal work on social choice theory, Kenneth Arrow (1963) mentions the ancient lineage of extended sympathy in ethical writings and its basic, if informal, character in many welfare judgments. Arrow's book itself (p. 9) uses individual preference orderings rather than real-valued measures of preferences. This excludes ''interpersonal comparisons ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Welfare Economics
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of public economics, the study of how government might intervene to improve social welfare. Welfare economics also provides the theoretical foundations for particular instruments of public economics, including cost–benefit analysis, while the combination of welfare economics and insights from behavioral economics has led to the creation of a new subfield, behavioral welfare economics. The field of welfare economics is associated with two fundamental theorems. The first states that given certain assumptions, competitive markets produce ( Pareto) efficient outcomes; it captures the logic of Adam Smith's invisible hand. The second states that given further restrictions, any Pareto efficient outcome can be supported as a competitive market equilibrium. Th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wealth
Wealth is the abundance of Value (economics), valuable financial assets or property, physical possessions which can be converted into a form that can be used for financial transaction, transactions. This includes the core meaning as held in the originating Old English word , which is from an Indo-European languages, Indo-European word stem. The modern concept of wealth is of significance in all areas of economics, and clearly so for economic growth, growth economics and development economics, yet the meaning of wealth is context-dependent. An individual possessing a substantial net worth is known as ''wealthy''. Net worth is defined as the current value of one's assets less liabilities (excluding the principal in trust accounts). At the most general level, economists may define wealth as "the total of anything of value" that captures both the subjective nature of the idea and the idea that it is not a fixed or static concept. Various definitions and concepts of wealth have been a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice Theory
Social choice theory or social choice is a theoretical framework for analysis of combining individual opinions, preferences, interests, or welfares to reach a ''collective decision'' or ''social welfare'' in some sense.Amartya Sen (2008). "Social Choice,". ''The New Palgrave Dictionary of Economics'', 2nd EditionAbstract & TOC./ref> Whereas choice theory is concerned with individuals making choices based on their preferences, social choice theory is concerned with how to translate the preferences of individuals into the preferences of a group. A non-theoretical example of a collective decision is enacting a law or set of laws under a constitution. Another example is voting, where individual preferences over candidates are collected to elect a person that best represents the group's preferences. Social choice blends elements of welfare economics and public choice theory. It is methodologically individualistic, in that it aggregates preferences and behaviors of individual member ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kenneth Arrow
Kenneth Joseph Arrow (23 August 1921 – 21 February 2017) was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972. In economics, he was a major figure in post-World War II neo-classical economic theory. Many of his former graduate students have gone on to win the Nobel Memorial Prize themselves. His most significant works are his contributions to social choice theory, notably "Arrow's impossibility theorem", and his work on general equilibrium analysis. He has also provided foundational work in many other areas of economics, including endogenous growth theory and the economics of information. Education and early career Arrow was born on 23 August 1921, in New York City. Arrow's mother, Lilian (Greenberg), was from Iași, Romania, and his father, Harry Arrow, was from nearby Podu Iloaiei. The Arrow family were Romanian Jews. His family was very supportive of his ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cardinal Utility
In economics, a cardinal utility function or scale is a utility index that preserves preference orderings uniquely up to positive affine transformations. Two utility indices are related by an affine transformation if for the value u(x_i) of one index ''u'', occurring at any quantity x_i of the goods bundle being evaluated, the corresponding value v(x_i) of the other index ''v'' satisfies a relationship of the form :v(x_i) = au(x_i) + b\!, for fixed constants ''a'' and ''b''. Thus the utility functions themselves are related by :v(x) = au(x) + b. The two indices differ only with respect to scale and origin. Thus if one is concave, so is the other, in which case there is often said to be diminishing marginal utility. Thus the use of cardinal utility imposes the assumption that levels of absolute satisfaction exist, so that the magnitudes of increments to satisfaction can be compared across different situations. In consumer choice theory, ordinal utility with its weaker assumption ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice And Individual Values
Kenneth Arrow's monograph ''Social Choice and Individual Values'' (1951, 2nd ed., 1963, 3rd ed., 2012) and a theorem within it created modern social choice theory, a rigorous melding of social ethics and voting theory with an economic flavor. Somewhat formally, the "social choice" in the title refers to Arrow's representation of how ''social values'' from the ''set of individual orderings'' would be implemented under the ''constitution''. Less formally, each social choice corresponds to the feasible set of laws passed by a "vote" (the set of orderings) under the constitution even if not every individual voted in favor of all the laws. The work culminated in what Arrow called the "General Possibility Theorem," better known thereafter as Arrow's (impossibility) theorem. The theorem states that, absent restrictions on either individual preferences or neutrality of the constitution to feasible alternatives, there exists no social choice rule that satisfies a set of plausible requir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Amartya Sen
Amartya Kumar Sen (; born 3 November 1933) is an Indian economist and philosopher, who since 1972 has taught and worked in the United Kingdom and the United States. Sen has made contributions to welfare economics, social choice theory, economic and social justice, economic theories of famines, decision theory, development economics, public health, and measures of well-being of countries. He is currently a Thomas W. Lamont University Professor, and Professor of Economics and Philosophy at Harvard University. He formerly served as Master of Trinity College at the University of Cambridge. He was awarded the Nobel Memorial Prize in Economic Sciences in 1998 and India's Bharat Ratna in 1999 for his work in welfare economics. The German Publishers and Booksellers Association awarded him the 2020 Peace Prize of the German Book Trade for his pioneering scholarship addressing issues of global justice and combating social inequality in education and healthcare. Early life and educ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kotaro Suzumura
was a Japanese economist and professor emeritus of Hitotsubashi University and Waseda University. He graduated from Hitotsubashi University in 1966. His research interests were in social choice theory and welfare economics. He was also a Fellow of the Econometric Society. He was named a Person of Cultural Merit in 2017. Selected publications Books * * * * * Chapters in books * Journal articles * See also * Extended sympathy * Social welfare function Notes References * Mark Blaug Mark Blaug FBA (; 3 April 1927 – 18 November 2011) was a Dutch-born British economist (naturalised in 1982), who covered a broad range of topics during his long career. He was married to Ruth Towse. Life and work Blaug was born on 3 April ... and Howard R. Vane, 2003. ''Who's Who in Economics', pp. 81814 External links Picture, brief listing of education and positions, and a personal statement of previous research interests and current research project ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice Theory
Social choice theory or social choice is a theoretical framework for analysis of combining individual opinions, preferences, interests, or welfares to reach a ''collective decision'' or ''social welfare'' in some sense.Amartya Sen (2008). "Social Choice,". ''The New Palgrave Dictionary of Economics'', 2nd EditionAbstract & TOC./ref> Whereas choice theory is concerned with individuals making choices based on their preferences, social choice theory is concerned with how to translate the preferences of individuals into the preferences of a group. A non-theoretical example of a collective decision is enacting a law or set of laws under a constitution. Another example is voting, where individual preferences over candidates are collected to elect a person that best represents the group's preferences. Social choice blends elements of welfare economics and public choice theory. It is methodologically individualistic, in that it aggregates preferences and behaviors of individual member ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
