- Series Information
- The Oxford Handbook of Well-Being and Public Policy
- List of Contributors
- Cost-Benefit Analysis
- Inequality and Poverty Measures
- Social Welfare Functions
- QALY-Based Cost-Effectiveness Analysis
- Fair Allocation
- Social Ordering Functions
- Multidimensional Indicators of Inequality and Poverty
- Happiness-Based Policy Analysis
- Preference-Based Views of Well-Being
- Mental State Approaches to Well-Being
- Objective Goods
- Subjective Well-Being in Psychology
- Subjective Well-Being in Economics
- Equivalent Income
- Extended Preferences
- SWB as a Measure of Individual Well-Being
- Does the Choice of Well-Being Measure Matter Empirically?
- Does Fairness Require a Multidimensional Approach?
- The Capability Approach and Well-Being Measurement for Public Policy
- Measuring Poverty: A Proposal
- Multidimensional Poverty Indices: A Critical Assessment
- Social Evaluation under Risk and Uncertainty
- Individual Responsibility and Equality of Opportunity
- Welfare Comparisons with Heterogeneous Prices, Consumption, and Preferences
- Welfare and the Household
- Preference Inconsistency: A Psychological Perspective
- Lifetime Well-Being
- The Well-Being of Future Generations
- Author Index
- Subject Index
Abstract and Keywords
This is an overview of the methods used to evaluate projects or policies when a normative approach is taken based on individual preferences. The evaluation of individual welfare change is first outlined and related to the concepts of willingness-to-pay and willingness-to-accept. The use of individual welfare measures in project evaluation is outlined. This is followed by approaches to aggregating individual welfare changes. The case for ignoring equity considerations based on the compensation criterion is critically discussed. The use of a social welfare function for cost-benefit analysis is presented, and it application to project evaluation outlined. Several extensions are considered, including the evaluation of non-marketed commodities, the treatment of uncertainty, and multi-period project evaluation. Throughout, the conceptual difficulties of measuring and aggregating welfare change are emphasized.
David Chadwick Smith Chair in Economics, Queens University
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