Description
This volume uses the framework of welfare and general equilibrium theory to establish basic parameters for the ranking of economic prospects. Following an introductory section which examines the fundamentals of welfare and equilibrium, the author proposes a general theory of ranking based on the foundations of economic utility. This is then applied to the ordering of financial portfolios using mean and variance, investment projects using the internal rate of return and the present value, and income distributions using the mean and Gini co-efficient.
More details
Language
English
Place of publication
Oxford
United Kingdom
Publishing group
John Wiley and Sons Ltd
Target group
College/higher education
Professional and scholarly
Dimensions
Height: 229 mm
Width: 152 mm
ISBN-13
978-1-55786-326-3 (9781557863263)
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Schweitzer Classification
Content
Part 1 Equilibrium and economic welfare: the nature and meaning of equilibrium in economic theory; linear programming; external economies of scale and competitive equilibrium; an empirical implication of Auspitz-Lieben-Edgeworth-Pareto complementarity; the fundamental theorem of welfare economics; compensation principle; Marshall's consumer's surplus in modern perspective; the consistency of the Marxian economic system. Part 2 The ranking of economic prospects: A - general theory of ranking; the foundations of utility; B - the ranking of uncertain outcomes and portfolios; stochastic choice and subjective probability; the ordering of portfolios in terms of mean and variance; C - the ranking of investment projects; a renewal model of economic growth - the discrete case; a renewal model of economic - the continuous case; D - the ranking of income distributions; homothetic preferences and aggregation; when is a fixed income distribution optimal?; the welfare ranking of Pareto distributions; the theory and measurement of income distribution.