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A discussion of different methods of constructing regional welfare weights

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  • Haluk SEZER

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

Suggested Citation

  • Haluk SEZER, 2006. "A discussion of different methods of constructing regional welfare weights," Departmental Working Papers 2006-21, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2006-21
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    Keywords

    regional welfare weights; cost-benefit analysis; elasticity of marginal utility of income;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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