VALUE PRESERVING WELFARE WEIGHTS FOR SOCIAL OPTIMIZATION PROBLEMS

B-Tier
Journal: International Economic Review
Year: 2021
Volume: 62
Issue: 4
Pages: 1627-1653

Authors (3)

Alexis Anagnostopoulos (Stony Brook University - SUNY) Eva Carceles‐Poveda (not in RePEc) Yair Tauman (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose endogenous, value preserving (VP) welfare weights as an alternative to equal weights utilitarianism. VP weights require that the contribution of an agent's endowments to social welfare is proportional to the contribution of the final allocation to his welfare. Under three axioms, the per unit contribution of a good to welfare is shown to equal the gradient of the welfare function. VP weights coincide with Negishi weights in frictionless environments but prescribe redistribution toward a good's owner when the good's social value exceeds its market value. When ability is treated as an endowment, VP weights reward ability and effort.

Technical Details

RePEc Handle
repec:wly:iecrev:v:62:y:2021:i:4:p:1627-1653
Journal Field
General
Author Count
3
Added to Database
2026-01-24