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The curvature properties of social welfare functions

Author

Listed:
  • Piera Mazzoleni

    (Cattolica University of Milan)

  • Elisa Pagani

    (University of Verona)

  • Federico Perali

    (University of Verona)

Abstract

This paper characterizes the curvature properties of applied social welfare functions. We choose as an example a general and non-abbreviated social welfare function introduced by Jorgenson and Slesnick (1983) that is frequently used in empirical work. We investigate the regularity of social preferences necessary to maximize social welfare with respect to prices and to guarantee that the social welfare function is well-behaved and suitable for theoretically plausible microsimulations. We use the notion of generalized convexity to define the necessary conditions for the social welfare function to be convex with respect to prices.

Suggested Citation

  • Piera Mazzoleni & Elisa Pagani & Federico Perali, 2019. "The curvature properties of social welfare functions," Working Papers 493, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2019-493
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2019-493.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Generalized convexity; social welfare function; inequality aversion.;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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