Abstract
“Welfare Economics” is a branch of economics that evaluates well-being . It focuses on the optimal allocation of resources and goods in competitive markets and how this affects individual and social welfare. This article argues that such results which emerge through the market process cannot be judged without taking into account the institutions of the market and of the political process (i.e. the “rules of the game”). To ignore this is a blind spot of welfare economics.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Arrow, Kenneth. 1950. A difficulty in the concept of social welfare. Journal of Political Economy 58: 328–346.
Bentham, Jeremy. 1789. An introduction to the principles of morals and legislation. Oxford.
Bergson, Abram. 1938. A reformulation of certain aspects of welfare economics. Quarterly Journal of Economics 52: 310–334.
Broadway, Robin W./Bruce Niel. 1984. Welfare economics. Oxford.
Buchanan, James M. 1975. The limits of liberty: Between anarchy and leviathan. Chicago.
Buchanan, James M. 1977. Freedom in constitutional contract. College Station.
Cowen, Tyler. 1988. The theory of market failure: A critical examination. Fairfax.
Daumann, Frank. 2007. Evolution and the rule of law. Hayek’s concept of liberal order reconcidered. Journal of Libertarian Studies 21: 123–150.
Feldman, Allan M./Roberto Serrano. 2005. Welfare economics and social choice theory. Berlin.
Harsanyi, John C. 1975. Can the maximin principle serve as a basis for morality? A critique of John Rawls’s theory. American Political Science Review 69: 594–606.
Hayek, Friedrich A. 1945. “The use of knowledge in society”. American Economic Review XXXV: 519–530.
Hayek, Friedrich A. 1960. The constitution of liberty. Chicago.
Hicks, John. 1939. The foundations of welfare economics. Economic Journal 49: 696–712.
Kaldor, Nicholas. 1939. Welfare propositions in economics and interpersonal comparisons of utility. Economic Journal 49: 549–552.
Keynes, John Maynard. 1936. The general theory of employment. London: Interest and Money.
Knight, Frank. 1921. Uncertainty, and profit. Mifflin-Boston-New York.
Mill, John Stuart. 1848. Principles of political economy. London.
Musgrave, Richard A. 1959. The theory of public finance: A study in public economy. New York.
Pareto, Vilfredo. 1909. Manuel d’Economie Politique. Paris.
Pigou, Athur Cecil. 1912. Wealth and welfare. London.
Pigou, Athur Cecil. 1920. The economics of welfare. London.
Rawls, John. 1971. A theory of justice. Cambridge.
Samuelson, Paul. 1947. Foundations of economic analysis. Cambridge.
Samuelson, Paul A. 1954. The pure theory of public expenditure. Review of Economics and Statistics 36: 387–389.
Scitovsky, Tibor. 1941. A note on welfare propositions in economics. Review of Economic Studies 9: 77–88.
Simon, Herbert A. 1947. Administrative behavior: A study of decision-making processes in administrative organization. New York.
Stigler, George. 1961. The economics of information. Journal of Political Economy 69: 213–225.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Leschke, M. (2016). A Critique of Welfare Economics. In: Luetge, C., Mukerji, N. (eds) Order Ethics: An Ethical Framework for the Social Market Economy . Springer, Cham. https://doi.org/10.1007/978-3-319-33151-5_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-33151-5_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-33149-2
Online ISBN: 978-3-319-33151-5
eBook Packages: Religion and PhilosophyPhilosophy and Religion (R0)