Access over 20 million homework & study documents

Welfare Economics

Content type
User Generated
Subject
Economics
Type
Homework
Rating
Showing Page:
1/15
WELFARE ECONOMICS
Welfare economics is the branch of economics which is primarily concern with
the promotion of the welfare of the community as measured an the satisfaction drive
from the economic good, as the disposal of the community. It is the function of
welfare economics to help in the formulation of economic policies calculated to
maximum social welfare.
The analysis of the efficiency of the economy with maximum to the
satisfaction as the yards-stick is known as the welfare economics. welfare economic
is that branch of economic analysis which is concern with the establishment of
criteria that can provide the positive basis for adopting policies which are likely to
maximize social welfare can summarize it as the principle function of welfare
economic is to provide standards of judgment by which one can judge economic
policies and events from the point of view from the social welfares.
As Scitovsky’s observe; welfare economic is the part of the general body of
economics theory which is concern with the policy so it has to define as economic
optimum may be. It has to lay down conditions for maximizing welfare and prescribe
policies with that ending view.
ECONOMIES AND NON ECONOMIC WELFARE
A distinction may be drawn between economic welfare and general welfare
and individual’s welfare may related to his physical well being spiritual well being r
economic well being. the concept of the welfare according to Robbins,”embrassis
many states on mine, some on merely sensual some of most spiritual nature but the
class economic will not be 1 of them”. Obviously economic is not concern with the
physical or spiritual well being. it is only concern with that aspect of indivual’s well
being which derived from economic goods and services. In Pigou’s view the range of
our inquiry has been restricted to part of social welfare that can be brought directly or
indirectly into relation with the measuring road of money. This part of welfare may be
called economic welfare. Welfare refers to the state of mine or as Pigou says ”the
elements of the welfare are states of consciousness” this is no doubt as our
subjective concept but it can be imparted an element of objectivity. by linking
individual welfare to individual choice so that his welfare map in his preference map.
For instance, if he chooses apple rather than oranges he could increase his
welfare by consuming apples rather than oranges person choice is determine by the
large number of variable sum of which are economic and others not. Welfare
economic ignores the non economic variable v might say that the economic welfare
refers to satisfaction drive from the consumption of economic goods where as
general welfare refers to the satisfaction drive from both economic and non
economic goods. On the later analysis it is imagined that mind is like a well of
unknown depth, partly filled the water the level of which could altered by turning on
various tabs labeled economic political ect. Once the water in the well there is no
one saying which tap it came from and also it is impossible to say how much water
there is in the well.
As professor cannon says there is no precise line between economic and non

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/15
economic satisfaction and therefore province of economics cannot be mark out by a
row of posts or a fence, like a political territory or a land property.
POSITIVE ECONOMICS AND WELFARE ECONOMICS
Positive economics explains an economic phenomenon and normative
economic comments on the desirability of that phenomenon. For instance Positive
economics explains why wealth in the community is un equally distributed and
normative economics would say whether the unequal distribution of the wealth is
desirable or not. The idea underlying the essential difference between positive
economics welfare economics can be explained in another way. The principal of
economics can be rejected if they cannot be verified and established in the light of
actual experience in the real world. The proportions of welfare economics are rather
different. They are based on assumptions some of which may or may not be realistic.
From the assumption we deduce conditions for maximizing welfare. Even if the
conditions are fulfilled the welfare may not be increased because the assumption
may turn to be inappropriate. It is difficult to say whether welfare has actually
increased since welfare is not a quantity like a market price or an item of personal
consumption. Testing a welfare proportion is an accidently difficult affair for private
estimation of welfare is likely to differ widely. Where the normal way of testing a
theory in a positive economics is is to test its conclusions, the normal way of testing
a welfare proportion is to test its assumptions. In positive economic assumptions are
simplified and adopted as convenient to draw conclusion and one worries only when
conclusion came to be applied in the real world. But the assumptions of the welfare
economics are more serious affair. It is clear that interest attaching to a theory of
welfare depend almost entirely upon the realism and relevance of its assumptions in
a particular historic context.
INDIVIDUAL WELFARE AND SOCIAL WELFARE
Social welfare has been defined as an aggregate of the utilities or satisfaction
of all the individuals in the society. The society consists of the millions of the
individuals who choose differently. The society has no mind of its own upon from
individuals. If in a society an economic measure or the policy makes some individual
better off and others worse off we cannot say what has happen to the social welfare
whether it has gone up or down. This however is sufficient for our purpose we can
assume the rational behavior on part of consumer in the mass. In driving the social
welfare from the individual welfare with the problem of inters personal comparison.
All are agreed that a rich man enjoys a greater measure of economic welfare than a
poor man. It is not really inter personal comparison that is comparing the utility are of
Positive Economics
Deals with the facts of the economy
Normative Economics
Deals with value of judgment about the situation

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/15

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 15 pages?
Access Now
Unformatted Attachment Preview
WELFARE ECONOMICS Welfare economics is the branch of economics which is primarily concern with the promotion of the welfare of the community as measured an the satisfaction drive from the economic good, as the disposal of the community. It is the function of welfare economics to help in the formulation of economic policies calculated to maximum social welfare. The analysis of the efficiency of the economy with maximum to the satisfaction as the yards-stick is known as the welfare economics. welfare economic is that branch of economic analysis which is concern with the establishment of criteria that can provide the positive basis for adopting policies which are likely to maximize social welfare can summarize it as the principle function of welfare economic is to provide standards of judgment by which one can judge economic policies and events from the point of view from the social welfares. As Scitovsky's observe; welfare economic is the part of the general body of economics theory which is concern with the policy so it has to define as economic optimum may be. It has to lay down conditions for maximizing welfare and prescribe policies with that ending view. ECONOMIES AND NON ECONOMIC WELFARE A distinction may be drawn between economic welfare and general welfare and individual's welfare may related to his physical well being spiritual well being r economic well being. the concept of the welfare according to Robbins,"embrassis many states on mine, some on merely sensual some ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
I was having a hard time with this subject, and this was a great help.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents