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Regional Welfare Weights in Investment Appraisal - The Case of India

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  • Kula, E.

Abstract

Pareto welfare criterion based only on people’s willingness to pay for the project’s output is regarded by many as being a narrow interpretation of an 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 regional welfare weights in India on the basis of a conventional consumption utility function which assumes diminishing marginal utility. Estimated parameters are; elasticity of marginal utility of consumption, and per capita national and regional incomes which are used in the calculation of welfare weights for 17 states of India.

Suggested Citation

  • 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), pages 1-16.
    • Handle: RePEc:ags:jrapmc:132234
    DOI: 10.22004/ag.econ.132234
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    References listed on IDEAS

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    Cited by:

    1. Durden, Garey C. & Gaynor, Patricia E., 2015. "Publishing in The Journal of Regional Analysis and Policy and an Evaluation (via Citation Counts) of JRAP’s Influence on Scholarship in Regional Science," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).
    2. David EVANS & Erhun KULA, 2009. "Social discount rates and welfare weights for public investment decisions under budgetary restrictions – the case of Cyprus," Departmental Working Papers 2009-19, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Erhun KULA, 2006. "Regional welfare weights," Departmental Working Papers 2006-32, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Artyom Gennadyevich Isaev, 2020. "Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 23-43.

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