Social Welfare Theory

“You have an architect and a ditch-digger working together on a construction project. Who gets paid more, and why?” Does a tendency toward abstraction and quantification, a pretense of objectivity, obscure the character, situation and bias from which all economic and political theorems stem? Following the principle that arguments neither arise nor persist in a vacuum, that they live and die by their context and character, we can describe two sorts of response corresponding to two rather timeless worldviews, along with (...) their accompanying “mind-sets”. The degree to which these views indicate differing “kinds” in human nature, beyond which there can be no further reduction to common ground, whether conversely they simply reflect historical and economic circumstance, or to what extent they are both, will be left to the reader. One might discern in the sensibilities described some alignment along traditional epithets of “bourgeois” vs. “working class”, but this is not necessarily so. I will therefore avoid overwrought labels, but admit that such family resemblances speak to a longer historical view and a persistent problematic. (shrink)

The reply begins by stating that responses to reviews of EfL are “taking criticism of their philosophical claims as personal attacks” and resorting to “hysterical ad hominems”. On the contrary, the responses to around fourteen—often highly positive—reviews have welcomed all their criticisms and simply replied to them. None of these replies appear to commit the ad hominem (to the man) fallacy: that of addressing the qualities of a person as a way of attempting to undermine or defend an argument or (...) assertion made by that person. (shrink)

Extensive measurement is the standard measurement-theoretic approach for constructing a ratio scale. It involves the comparison of objects that can be concatenated in an additively representable way. This paper studies the implications of extensively measurable welfare for social choice theory. We do this in two frameworks: an Arrovian framework with a fixed population and no interpersonal comparisons, and a generalized framework with variable populations and full interpersonal comparability. In each framework we use extensive measurement to introduce novel domain restrictions, independence (...) conditions, and constraints on social evaluation. We prove a welfarism theorem for these domains and characterize the social welfare functions that satisfy the axioms of extensive measurement at both the individual and social levels. The main results are simple axiomatizations of strong dictatorship in the Arrovian framework and classical utilitarianism in the generalized framework. (shrink)

Many welfarists wish to assign to each possible state of the world a numerical value that measures something like its moral goodness. How are we to determine this quantity? This paper proposes a contractualist approach: a legitimate measure of moral goodness is one that could be justified to each member of the population in question. How do we justify a measure of moral goodness to each individual? Each individual recognises the measure of moral goodness must be a compromise between the (...) different levels of well-being within the population. Some compromises are more reasonable than others; and some are better justifiable to a given member of the population than others. Each member recognises that the social chooser's measure of moral goodness is going to have to deviate from the well-being function of at least some of the members of the population. But we can nonetheless justify it to each of them if it doesn't deviate more than is necessary, and if the deviations from each member are given equal weighting in whatever process we use to determine it. This paper proposes that we begin with a measure of the distance from a proposed compromise to an individual's level of well-being, and then say that the moral goodness is the candidate compromise that minimizes the sum of distances from it to the individuals' levels of well-being. I describe a range of such measures of distance and show that some give utilitarianism, others different versions of prioritarianism. (shrink)

It has been argued that Prioritarianism violates Risky Non-Antiegalitarianism, a condition stating roughly that an alternative is socially better than another if it both makes everyone better off in expectation and leads to more equality. I show that Risky Non-Antiegalitarianism is in fact compatible with Prioritarianism as ordinarily defined, but that it violates some other conditions that may be attractive to prioritarians. While I argue that the latter conditions are not core principles of Prioritarianism, the choice between these conditions and (...) Risky Non-Antiegalitarianism nonetheless constitutes an important intramural debate for prioritarians. (shrink)

Multidimensional concepts are everywhere, and they are important. Examples include moral value, welfare, scientific confirmation, democracy, and biodiversity. How, if at all, can we aggregate the underlying dimensions of a multidimensional concept F to yield verdicts about which things are Fer than which overall? Social choice theory can be used to model and investigate this aggregation problem. Here, we focus on a particularly thorny problem made salient by this social choice-theoretic framework: the underlying dimensions of a given concept might be (...) measurable on different types of scales—e.g., some ordinal and some cardinal. An underappreciated impossibility theorem due to Anna Khmelnitskaya shows that seemingly plausible constraints on aggregation across scale types are inconsistent. This impossibility threatens to render the notion of overall Fness incoherent. We attempt to defuse this threat, arguing that the impossibility depends on an overly restrictive conception of measurement and of how measurement constrains aggregation. Adopting a more flexible—and, we think, more perspicuous—conception of measurement opens an array of possibilities for aggregation across disparate scale types. (shrink)

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the (...) Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81. (shrink)

Tsui and Weymark (Economic Theory, 1997) have shown that the only continuous social welfare orderings on the whole Euclidean space which satisfy the weak Pareto principle and are invariant to individual-specific similarity transformations of utilities are strongly dictatorial. Their proof relies on functional equation arguments which are quite complex. This note provides a simpler proof of their theorem.

This paper develops and explores a new framework for theorizing about the measurement and aggregation of well-being. It is a qualitative variation on the framework of social welfare functionals developed by Amartya Sen. In Sen’s framework, a social or overall betterness ordering is assigned to each profile of real-valued utility functions. In the qualitative framework developed here, numerical utilities are replaced by the properties they are supposed to represent. This makes it possible to characterize the measurability and interpersonal comparability of (...) well-being directly, without the use of invariance conditions, and to distinguish between real changes in well-being and merely representational changes in the unit of measurement. The qualitative framework is shown to have important implications for a range of issues in axiology and social choice theory, including the characterization of welfarism, axiomatic derivations of utilitarianism, the meaningfulness of prioritarianism, the informational requirements of variable-population ethics, the impossibility theorems of Arrow and others, and the metaphysics of value. (shrink)

Goodwill is an intangible asset that we can find in a company's accounting cycle. Goodwill is basically subject to depreciation and the measurement related to the amount of depreciation of goodwill does not yet have a strong enough basis so that the assessment of goodwill tends to be subjective and based on management's interests, the impact of this subjective assessment is a failure to present good financial statements and can trigger decision-making errors for third parties. internal or external. The asymmetry (...) of the philosophy of economic materialism is an approach that can be used to repress or negate goodwill by providing an alternative to eliminating goodwill. However, this Philosophical Asymmetry of Economic Materialism is not a final approach because it still depends on several factors that will influence it. Ethical utilitarianism is one of the factors that can influence the effectiveness and implementation of the Philosophical Asymmetry of Economic Materialism as a form of increasing profits and optimizing costs to be incurred by companies in the future. Philosophical asymmetry of Economic Materialism seeks to suppress or negate the existence of goodwill as a form of ethical utilitarianism in the business environment. (shrink)

Is well-being the kind of thing that can be summed across individuals? This paper takes a measurement-theoretic approach to answering this question. To make sense of adding well-being, we would need to identify some natural "concatenation" operation on the bearers of well-being that satisfies the axioms of extensive measurement and can therefore be represented by the arithmetic operation of addition. I explore various proposals along these lines, involving the concatenation of segments within lives over time, of entire lives led alongside (...) one another or in sequence, and of evaluatively basic propositions via conjunction. All of these proposals turn out to carry highly controversial commitments about the good. I do not claim that these commitments are unacceptable. But they suggest that we cannot simply take for granted, as many philosophers do, that there is any such thing as the sum of well-being. (shrink)

This paper presents a new kind of problem in the ethics of distribution. The problem takes the form of several “calibration dilemmas,” in which intuitively reasonable aversion to small-stakes inequalities requires leading theories of distribution to recommend intuitively unreasonable aversion to large-stakes inequalities. We first lay out a series of such dilemmas for prioritarian theories. We then consider a widely endorsed family of egalitarian views and show that they are subject to even more forceful calibration dilemmas than prioritarian theories. Finally, (...) we show that our results challenge common utilitarian accounts of the badness of inequalities in resources. (shrink)

Universal Basic Income has become a popular idea in the last few decades even though one can find its roots in the earlier centuries. In this thesis, I have examined the position of UBI in the works of the most influential contemporary philosophers. By connecting the idea of UBI with some certain concepts from different philosophers, I aimed to improve the overall understanding of UBI. I have mentioned the concepts such as "labor", "leisure", "idleness", "boredom", "poverty", "inequality", "distribution", "happiness", "power", (...) "needs", "truth", "alienation", etc. I have used a literature methodology for my research. I have tried to read and relate the concept of UBI with the works of 10 philosophers: Arthur Schopenhauer, Karl Marx, William James, Bertrand Russell, Michel Foucault, John Rawls, Robert Nozick, Noam Chomsky, Slavoj Zizek, Peter Singer. (shrink)

Many philosophers appeal to the “fallacy of approximation”, or “problem of second best”. However, despite the pervasiveness of such appeals, there has been only a single attempt to provide a systematic account of what the fallacy is. We identify the shortcomings of this account and propose a better one in its place. Our account not only captures all the contexts in which approximation-based reasoning occurs but also systematically explains the several different ways in which it can be in error.

This paper is about the role of interpersonal comparisons in Harsanyi's aggregation theorem. Harsanyi interpreted his theorem to show that a broadly utilitarian theory of distribution must be true even if there are no interpersonal comparisons of well-being. How is this possible? The orthodox view is that it is not. Some argue that the interpersonal comparability of well-being is hidden in Harsanyi's premises. Others argue that it is a surprising conclusion of Harsanyi's theorem, which is not presupposed by any one (...) of the premises. I argue instead that Harsanyi was right: his theorem and its weighted-utilitarian conclusion do not require interpersonal comparisons of well-being. The key to making sense of this possibility is to treat Harsanyi's weights as dimensional constants rather than dimensionless numbers. (shrink)

In this essay I propose a new measure of social welfare. It captures the intuitive idea that quantity, quality, and equality of individual welfare all matter for social welfare. More precisely, it satisfies six conditions: Equivalence, Dominance, Quality, Strict Monotonicity, Equality and Asymmetry. These state that i) populations equivalent in individual welfare are equal in social welfare; ii) a population that dominates another in individual welfare is better; iii) a population that has a higher average welfare than another population is (...) better, other things being equal; iv) the addition of a well-faring individual makes a population better, whereas the addition of an ill-faring individual makes a population worse; v) a population that has a higher degree of equality than another population is better, other things being equal; and vi) individual illfare matters more for social welfare than individual welfare. By satisfying the six conditions, the measure improves on previously proposed measures, such as the utilitarian Total and Average measures, as well as different kinds of Prioritarian measures. (shrink)

Matthew Adler's Measuring Social Welfare is an introduction to the social welfare function (SWF) methodology. This essay questions some ideas at the core of the SWF methodology having to do with the relation between the SWF and the measure of well-being. The facts about individual well-being do not single out a particular scale on which well-being must be measured. As with physical quantities, there are multiple scales that can be used to represent the same information about well-being; no one scale (...) is special. Like physical laws, the SWF and its ranking of distributions cannot depend on exactly which of these scales we use. Adler and other theorists in the SWF tradition have used this idea to derive highly restrictive constraints on the shape of the SWF. These constraints rule out seemingly plausible views about distributive justice and population ethics. I argue, however, that these constraints stem from a simple but instructive mistake. The SWF should not be applied to vectors of numbers such as 1 and 2, but rather to vectors of dimensioned quantities such as 1 util and 2 utils. This seemingly pedantic suggestion turns out to have far-reaching consequences. Unlike the orthodox SWF approach, treating welfare levels as dimensioned quantities lets us distinguish between real changes in well-being and mere changes in the unit of measurement. It does this without making the SWF depend on the scale on which welfare is measured, and in a way that avoids the restrictive constraints on the shape of the SWF. (shrink)

Given the endowment effect, the role of attention in decision-making, and the framing effect, most behavioral economists agree that it would be a mistake to accept the satisfaction of revealed preferences as the normative criterion of choice. Some have suggested that what makes agents better off is not the satisfaction of revealed preferences, but ‘true’ preferences, which may not always be observed through choice. While such preferences may appear to be an improvement over revealed preferences, some philosophers of economics have (...) argued that they face insurmountable epistemological, normative, and methodological challenges. This article introduces a new kind of true preference – values-based preferences – that blunts these challenges. Agents express values-based preferences when they choose in a manner that is compatible with a consumption plan grounded in a value commitment that is normative, affective, and stable for the agent who has one. Agents who choose according to their plans are resolute choosers. My claim is that while values-based preferences do not apply to every choice situation, this kind of preference provides a rigorous way for thinking about classic choice situations that have long interested behavioral economists and philosophers of economics, such as ‘Joe-in-the-cafeteria.’. (shrink)

The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

In this ambitious book composed of the author’s published articles, he develops practical and theoretical frameworks for social work in disability issues. He explores practical strategies for promoting social and economic participation of disabled people from the perspective of developmental social work, whilst examining the situation of their socioeconomic participation in rural Sri Lanka. Based on these theoretical and practical frameworks, together with policy analysis of community-based rehabilitation (CBR), the field research was undertaken collaboratively with local stakeholders in three districts. (...) The findings suggest that developmental social work practices, including an indigenous approach, social investment, and a multi-sectoral approach, could address the vicious cycle of inadequate education, poverty, and marginalisation. This book also explores the implications of these findings for policy and practice in other contexts. (shrink)

An important objection to preference-satisfaction theories of well-being is that these theories cannot make sense of interpersonal comparisons of well-being. A tradition dating back to Harsanyi () attempts to respond to this objection by appeal to so-called extended preferences: very roughly, preferences over situations whose description includes agents’ preferences. This paper examines the prospects for defending the preference-satisfaction theory via this extended preferences program. We argue that making conceptual sense of extended preferences is less problematic than others have supposed, but (...) that even so extended preferences do not provide a promising way for the preference satisfaction theorist to make interpersonal well-being comparisons. Our main objection takes the form of a trilemma: depending on how the theory based on extended preferences is developed, either the result will be inconsistent with ordinary preference-satisfaction theory, or it will fail to recover sufficiently rich interpersonal well-being comparisons, or it will take on a number of other arguably odd and undesirable commitments. (shrink)

The Pareto principle states that if the members of society express the same preference judgment between two options, this judgment is compelling for society. A building block of normative economics and social choice theory, and often borrowed by contemporary political philosophy, the principle has rarely been subjected to philosophical criticism. The paper objects to it on the ground that it indifferently applies to those cases in which the individuals agree on both their expressed preferences and their reasons for entertaining them, (...) and those cases in which they agree on their expressed preferences, while differing on their reasons. The latter are cases of "spurious unanimity", and it is normatively inappropriate, or so the paper argues, to defend unanimity preservation at the social level for them, so the Pareto principle is formulated much too broadly. The objection seems especially powerful when the principle is applied in an ex ante context of uncertainty, in which individuals can disagree on both their probabilities and utilities, and nonetheless agree on their preferences over prospects. (shrink)

The social welfare functional approach to social choice theory fails to distinguish a genuine change in individual well-beings from a merely representational change due to the use of different measurement scales. A generalization of the concept of a social welfare functional is introduced that explicitly takes account of the scales that are used to measure well-beings so as to distinguish between these two kinds of changes. This generalization of the standard theoretical framework results in a more satisfactory formulation of welfarism, (...) the doctrine that social alternatives are evaluated and socially ranked solely in terms of the well-beings of the relevant individuals. This scale-dependent form of welfarism is axiomatized using this framework. The implications of this approach for characterizing classes of social welfare orderings are also considered. (shrink)

Numerous philosophers allege that the "general theory of second best" (Lipsey and Lancaster, 1956) poses a challenge to the Target View, which asserts that real world reform efforts should aim to establish arrangements that satisfy the constitutive features of ideal just states of affairs. I demonstrate two claims that are relevant in this context. First, I show that the theory of second best fails to present a compelling challenge to the Target View in general. But, second, the theory of second (...) best requires ideal theorists to undertake certain kinds of causal and comparative analyses that are typically thought to lie beyond the borders of conventional ideal theory. (shrink)

Abstract: This paper examines Mark Blaug's position on the normative character of Paretian welfare economics: in general, and specifically with respect to his debate with Pieter Hennipman over this question during the 1990s. The paper also clarifies some of the confusions that emerged within the context of this debate, and closes by providing some additional arguments supporting Blaug's position that he himself did not provide.

By introducing elements of phenomenological philosophy to the analysis of human needs in economics; from Sartrean postulates as well as the nature and essence of individual’s needs, has been revealed a theorethical framework that serves to ponder human being’s existential behavior by means of their phenomenologic social choices and welfare. Defining a planning agent under strong assumptions of rationality and projective efficacious capabilities, the Arrow’s theorem has been proved for the economic agent aware of its finitude in this world.

This paper explores the implications of libertarianism for welfare policy. There are two central arguments. First, the paper argues that if one adopts a libertarian framework, it makes most sense to be a Lockean right-libertarian. Second, the paper argues that this form of libertarianism leads to the endorsement of a fairly extensive set of redistributive welfare programs. Specifically, the paper argues that Lockean right-libertarians are committed to endorsing welfare programs under which the receipt of benefits is conditional on meeting a (...) work requirement, and also endorsing some form of publicly funded jobs of last resort for potential welfare recipients. (shrink)

Capitalismo e riconoscimento" presenta, in cinque saggi per la prima volta raccolti insieme e tradotti in italiano, una densa e pregnante analisi di taluni cruciali processi socio-strutturali, morali e normativi delle società capitalistiche contemporanee dalla prospettiva delle dinamiche del reciproco riconoscimento e del disrispetto concernenti la sfera del lavoro. Particolare attenzione è dedicata ai paradossali rovesciamenti delle istanze di autorealizzazione, autonomia e responsabilità personale registratisi negli ultimi decenni nel quadro di un mercato del lavoro sempre più deregolato.

The paper aims to single out and clarify some causal connections between theconcomitant growth of depressive phenomena, not only in the strict clinicalsense, and the establishment of the new capitalist model, which has taken place in Western countries from the early seventies until today. As well as onthe mechanism of labour market flexibility, the essay dwells in particular onthe paradoxical dynamics of the ethical and moral ideals of the newideological configuration. Finally, the paper will also use the category of hegemony (...) to offer some theoretical instruments directed at reactivating theemancipatory potentials frustrated by social suffering of a depressive and regressive nature. Il saggio mira a individuare e delucidare alcuni nessi causali tra il concomitante incremento dei fenomeni depressivi, non solo in senso strettamente clinico, e l’affermazione del nuovo modello capitalistico avvenuto nei paesi occidentali dai primi anni settanta ad oggi. Oltre che sul meccanismo della flessibilità del mercato del lavoro, si insiste in particolare sulle dinamiche paradossali delle istanze etiche e morali della nuova configurazione ideologica. Ricorrendo anche alla categoria di egemonia, vengono da ultimo approntati degli strumenti teorici finalizzati a riattivare i potenziali emancipativi frustrati nella sofferenza sociale di natura depressiva e regressiva. (shrink)

"Happiness research" studies the correlates of subjective well-being, generally through survey methods. A number of psychologists and social scientists have drawn upon this work recently to argue that the American model of relatively limited government and a dynamic market economy corrodes happiness, whereas Western European and Scandinavian-style social democracies promote it. This paper argues that happiness research in fact poses no threat to the relatively libertarian ideals embodied in the U.S. socioeconomic system. Happiness research is seriously hampered by confusion and (...) disagreement about the definition of its subject as well as the limitations inherent in current measurement techniques. In its present state happiness research cannot be relied on as an authoritative source for empirical information about happiness, which, in any case, is not a simple empirical phenomenon but a cultural and historical moving target. Yet, even if we accept the data of happiness research at face value, few of the alleged redistributive policy implications actually follow from the evidence. The data show that neither higher rates of government redistribution nor lower levels of income inequality make us happier, whereas high levels of economic freedom and high average incomes are among the strongest correlates of subjective well-being. Even if we table the damning charges of questionable science and bad moral philosophy, the American model still comes off a glowing success in terms of happiness. (shrink)

As it is known, there is no rule satisfying Additivity in the complete domain of bankruptcy problems. This paper proposes a notion of partial Additivity in this context, to be called µ-additivity. We find that µ-additivity, together with two quite compelling axioms, anonymity and continuity, identify the Minimal Overlap rule, introduced by Neill (1982).

This analysis examines economic collectivization, which is one of the problems in modern economic studies, and reconstruction efforts through a Marxian economic approach with an emphasis on meritocracy. This analysis highlights criticism of modern economic approaches which tend to be abstract, ignore practical aspects of economics, and ignore social problems. The Marxian economic approach is seen as an alternative that prioritizes use-value in economics rather than simply exchange-value. Through Marxian meritocracy, it is hoped that collaboration between econometrics analysts and human (...) resources can produce more relevant economic analysis, consider forgotten social aspects, and support sustainable economic collectivization. (shrink)

How should we as a society value changes in population size? The question may be crucial when evaluating global warming scenarios. I defend the intuition of neutrality, which answers a part of the question. It states that – other things being equal – it is ethically irrelevant whether or not additional people are added to a population. The argument against neutrality criticizes the intuition of neutrality as inconsistent. The contribution of this thesis is twofold: First, the framework of welfare economics, (...) the intuition of neutrality, and the argument against neutrality will be presented with formal rigour. Second, the formalizations will be used for a critical analysis of the argument against neutrality. Three ethical frameworks will be assumed – the difference principle, average utilitarianism, and contractarianism –, and their relation to the explicit and hidden premises of the argument against neutrality will be investigated. The result will be that all three frameworks are compatible with the intuition of neutrality (or slightly modified versions); so the argument against neutrality does not hold within them. (shrink)

This paper aims to show errors in common methodology of reasoning about macroeconomic theory. The error comes from confusion about descriptive and scientific methods of inquiry being used as a means of justifying conclusions with a normative basis. I will argue that many tools used in theorizing about the political economy that are thought of as able to express an isolated variable proving a normative point, actually contain normative assumptions which impact the soundness of the conclusion. The hidden values generally (...) serve to justify the status quo. Looking at my argument from a metaperspective, I argue that some popular methodology winds up in the general state of circular reasoning. I will try to weave two arguments together, the first is showing how economic concepts are value-laden, and also that they are implicit values of ideology, and operate as a powerful tool for the status quo. The ideology learns that things must be what they are, because the rest of the ideology seeks to justify it. There is both a factual and a value-driven thesis to this paper. Using examples I show how economic concepts that are thought of as being value neutral, are actually implicitly holding values that uphold the status quo and the growing tides of income inequality. I also wish to demonstrate how ideology constructs the common understanding, and how this effort keeps the populace from seeking emancipatory economic ideals and tax reform. (shrink)