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The Intransitivity Of Certain Criteria Used In Welfare Economics

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  • W. M. GORMAN

Abstract

In this paper it is shown that neither the Scitovsky nor the double index number criterion for an increase in welfare is transitive. The consistent use of either could therefore lead to inconsistent judgements. The relationship of these results to Arrow's general theorem concerning the impossibility of constructing a social welfare function satisfying certain restrictions is discussed. The author feels sure that many of these results must be familiar to individual economists, but they do not appear to be generally known.

Suggested Citation

  • W. M. Gorman, 1955. "The Intransitivity Of Certain Criteria Used In Welfare Economics," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 25-34.
    • Handle: RePEc:oup:oxecpp:v:vii:y:1955:i:1:p:25-34.
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    File URL: http://hdl.handle.net/10.1093/oxfordjournals.oep.a042338
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    Cited by:

    1. Bossert, Walter, 1996. "The Kaldor compensation test and rational choice," Journal of Public Economics, Elsevier, vol. 59(2), pages 265-276, February.
    2. Carlisle Ford Runge & Robert J. Myers, 1985. "Shifting Foundations of Agricultural Policy Analysis: Welfare Economics When Risk Markets Are Incomplete," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1010-1016.
    3. Kotaro Suzumura, 2002. "Introduction to social choice and welfare," Temi di discussione (Economic working papers) 442, Bank of Italy, Economic Research and International Relations Area.
    4. Suzumura, Kotaro & Xu, Yongsheng, 2003. "On constrained dual recoverability theorems," Mathematical Social Sciences, Elsevier, vol. 45(2), pages 143-154, April.
    5. Daniel Bromley, 2004. "Reconsidering Environmental Policy: Prescriptive Consequentialism and Volitional Pragmatism," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(1), pages 73-99, May.
    6. Koulovatianos, Christos & Schröder, Carsten & Schmidt, Ulrich, 2019. "Do demographics prevent consumption aggregates from reflecting micro-level preferences?," European Economic Review, Elsevier, vol. 111(C), pages 166-190.
    7. Smart, Michael, 1999. "A simple proof of the efficiency of the poll tax," Journal of Public Economics, Elsevier, vol. 71(3), pages 459-465, March.
    8. Robin Boadway, 2017. "Second-Best Theory: Ageing well at Sixty," Pacific Economic Review, Wiley Blackwell, vol. 22(2), pages 249-270, May.
    9. Matthew D. Adler, 2016. "Editor's Choice Benefit–Cost Analysis and Distributional Weights: An Overview," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 264-285.

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