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A Critique of Welfare Economics

  • Martin Leschke
Chapter

Abstract

“Welfare Economics” is a branch of economics that evaluates well-being. It focuses on the optimal allocation of resources and goods in competitive markets and how this affects individual and social welfare. This article argues that such results which emerge through the market process cannot be judged without taking into account the institutions of the market and of the political process (i.e. the “rules of the game”). To ignore this is a blind spot of welfare economics.

Keywords

Social Welfare Welfare Economic Market Failure Consumer Surplus Social Welfare Function 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Department of Economics, Faculty of Law and EconomicsUniversity of BayreuthBayreuthGermany

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