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The sum of concave transformations of utilities is a natural benchmark for policy analysis.
But how compelling is it?
@schokkaerterik and Tarroux survey research on its popularity.
#econtwitter
https://halshs.archives-ouvertes.fr/halshs-03110312/document
1/5
But how compelling is it?
@schokkaerterik and Tarroux survey research on its popularity.
#econtwitter
https://halshs.archives-ouvertes.fr/halshs-03110312/document
1/5
This chapter for the book Prioritarianism in Practice (M.Adler & @OFNorheim, eds.) is very well-written and highly recommended.
The main message (supported by both surveys and experiments) is striking:
“Crucial axioms…are not accepted by a large fraction…”! 2/5
The main message (supported by both surveys and experiments) is striking:
“Crucial axioms…are not accepted by a large fraction…”! 2/5
Basic principles such as monotonicity, anonymity, Pigou-Dalton, separability,… all seem extremely vulnerable to popular opinion, with acceptance rates sometimes below 50%.
What is the issue? Can we still do welfare analysis? Who agrees with our “optimal” policies? 3/5
What is the issue? Can we still do welfare analysis? Who agrees with our “optimal” policies? 3/5
My view is that we need to rethink standard welfare economic tools.
The main limitation is that standard welfare criteria are independent of all information that individuals care about for equity, fairness, and justice (in fact, information makes subjects change views). 4/5
The main limitation is that standard welfare criteria are independent of all information that individuals care about for equity, fairness, and justice (in fact, information makes subjects change views). 4/5
Can we add this information?
Social choice theory does so already more than 70 years, when identifying solutions to specific problems (allocating claims, sharing costs, assigning schools…)
Fine-grained welfare criteria lag far behind, but recent research shows it is possible!5/5
Social choice theory does so already more than 70 years, when identifying solutions to specific problems (allocating claims, sharing costs, assigning schools…)
Fine-grained welfare criteria lag far behind, but recent research shows it is possible!5/5
