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A discussion of different methods of constructing regional welfare weights

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  • Haluk SEZER

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    Abstract

    Income per capita is an important and hence widely used measure in the construction of social welfare weights. This paper, however, aims to discuss the construction of social welfare weights based not merely on Income per capita but on equally distributed equivalent income (EDEI). For example, the use of EDEI allows the intra-regional distribution of income to be taken directly into account when constructing regional welfare weights. Based on the data regarding two contrasting geographical regions of Turkey, the paper aims to demonstrate the impact of using EDEI, as opposed to unadjusted per capita income, on the magnitudes of calculated regional welfare weights. The EDEI method would be useful for the purpose of constructing regional welfare weights for application in the appraisal of social projects within the EU

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    File URL: http://wp.demm.unimi.it/tl_files/wp/2006/DEMM-2006_021wp.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2006-21.

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    Date of creation: 13 Oct 2006
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    Handle: RePEc:mil:wpdepa:2006-21

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    Related research

    Keywords: regional welfare weights; cost-benefit analysis; elasticity of marginal utility of income;

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