A Contribution to the Theory of Welfare Accounting

نویسنده

  • Martin L. Weitzman
چکیده

A kind of "unified theory" is proposed as a dynamic generalization of the standard consumersurplus methodology for evaluating welfare changes. The "unified theory" allows rigorous dynamic welfare comparisons to be inferred between any two economic situations-from just knowing current incomes and observing a short-run market demand schedule. Essentially, the change in present discounted future utility is exactly captured by the formula: difference in current income plus consumer surplus. This well-known formula is thereby shown to cover a far wider class of welfare comparisons than is customarily treated in the textbook static case.

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تاریخ انتشار 2007