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Regional welfare weights

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  • Erhun KULA

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    Abstract

    Pareto welfare criterion based on people’s willingness to pay for a project’s output is regarded by many as a narrow interpretation of improvement in social well-being. A broader opinion is that even though poorer individuals may be less able to pay for a particular benefit, they may obtain greater utility from it. In line with the broader opinion, this paper looks at country based welfare weights in the European Union with a special emphasis on relatively poor countries who became members recently. Welfare weights now have a high policy profile in the European Union in relation to distribution of funds between member and member to be countries. They can also be used in cost-benefit analysis to give priority to infrastructure projects in underprivileged areas

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    File URL: http://wp.demm.unimi.it/tl_files/wp/2006/DEMM-2006_032wp.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 2006-32.

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    Date of creation: 31 Oct 2006
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    Handle: RePEc:mil:wpdepa:2006-32

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    Keywords: Cost-Benefit Analysis; Regional welfare weights; Income Distribution; EU Structural Funds;

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    1. Kula, E., 2002. "Regional Welfare Weights in Investment Appraisal - The Case of India," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(1).
    2. D. Evans & E. Kula & H. Sezer, 2005. "Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 923-937.
    3. Neal Blue, E. & Tweeten, Luther, 1997. "The estimation of marginal utility of income for application to agricultural policy analysis," Agricultural Economics, Blackwell, vol. 16(3), pages 155-169, August.
    4. David J. Evans, 2005. "The elasticity of marginal utility of consumption: estimates for 20 OECD countries," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 197-224, June.
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