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A Reconsideration of Income Compensation Functions in Social Welfare Theory

  • Susanne Fuchs-Seliger
Conference paper

Abstract

In his book “Measuring Economic Welfare: New Methods” [8] George W. Mc Kenzie elaborates the theory and applications of income compensation functions in social welfare theory. Unlike utility functions income compensation functions are in principle observable. For this reason the aggregation of income compensation functions m(p,x) to social welfare functions like
$$ \Omega ({x^1},\, \ldots \,,\,{x^k})\, = \,W(\{ {m^i}(p^\circ ,\,{x^i})\mathop \} \limits_{i = 1}^k ),$$
where \( W:\,{\mathbb{R}^k}\, \to \,\mathbb{R} \) is a Bergson-Samuelson social welfare function is an aggregation of observable quantities.

Keywords

Utility Function Social Welfare Demand Function Social Welfare Function Indifference Curve 
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-Verlag Berlin · Heidelberg 1994

Authors and Affiliations

  • Susanne Fuchs-Seliger
    • 1
  1. 1.Institut für Wirtschaftstheorie und ORUniversität KarlsruheKarlsruheGermany

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