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Well-being measurement with non-classical goods

Author

Listed:
  • Marc Fleurbaey

    (Princeton University)

  • François Maniquet

    (Université catholique de Louvain)

Abstract

As in Fleurbaey and Maniquet (Math Soc Sci 90:119–126, 2017, Int J Econ Theory 14(1):35–50, 2018), we construct individual well-being measures that respect individual preferences and depend on the bundles of goods consumed by the individual. We show that the results obtained under the assumption that all available goods are desirable (more is preferred) and cardinal (convex combination of bundles are meaningful) do not generalize to the case in which goods are ordinal or not always desirable. We justify new measures. We conclude by showing that in a general case with goods of all natures, putting all results together allows us to define a short list of families of well-being measures.

Suggested Citation

  • Marc Fleurbaey & François Maniquet, 2019. "Well-being measurement with non-classical goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(3), pages 765-786, October.
    • Handle: RePEc:spr:joecth:v:68:y:2019:i:3:d:10.1007_s00199-018-1143-7
    DOI: 10.1007/s00199-018-1143-7
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    References listed on IDEAS

    as
    1. Marc Fleurbaey & François Maniquet, 2018. "Inequality-averse well-being measurement," LIDAM Reprints CORE 2941, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Fleurbaey, Marc & Maniquet, François, 2017. "Fairness and well-being measurement," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 119-126.
    3. Chambers, Christopher P. & Miller, Alan D., "undated". "Inefficiency," Working Papers WP2011/14, University of Haifa, Department of Economics, revised 30 Nov 2011.
    4. Fleurbaey, Marc & Blanchet, Didier, 2013. "Beyond GDP: Measuring Welfare and Assessing Sustainability," OUP Catalogue, Oxford University Press, number 9780199767199, Decembrie.
    5. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521887427, January.
    6. Nicolas Gravel & Brice Magdalou & Patrick Moyes, 2014. "Ranking Distributions of an Ordinal Attribute," AMSE Working Papers 1450, Aix-Marseille School of Economics, France.
    7. Chambers, Christopher P. & Miller, Alan D., 2014. "Scholarly influence," Journal of Economic Theory, Elsevier, vol. 151(C), pages 571-583.
    8. Koen Decancq & Marc Fleurbaey & Erik Schokkaert, 2015. "Happiness, Equivalent Incomes and Respect for Individual Preferences," Economica, London School of Economics and Political Science, vol. 82, pages 1082-1106, December.
    9. Elisha A. Pazner & David Schmeidler, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, Oxford University Press, vol. 92(4), pages 671-687.
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    11. Marc Fleurbaey & François Maniquet, 2018. "Inequality†averse well†being measurement," International Journal of Economic Theory, The International Society for Economic Theory, vol. 14(1), pages 35-50, March.
    12. Donaldson, David, 1992. "On The Aggregation Of Money Measures Of Well-Being In Applied Welfare Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-12, July.
    13. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
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    Cited by:

    1. Harun Onder & Pierre Pestieau & Grégory Ponthière, 2019. "Equivalent income versus equivalent lifetime: does the metric matter?," Working Papers halshs-02187803, HAL.
    2. Marie-Louise Leroux & Pierre Pestieau & Gregory Ponthiere, 2022. "Childlessness, childfreeness and compensation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(1), pages 1-35, July.
    3. Nicolas Gravel & Brice Magdalou & Patrick Moyes, 2021. "Ranking distributions of an ordinal variable," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 33-80, February.
    4. Matthew D. Adler & Koen Decancq, 2021. "Well-Being Measurement," Working Papers 2105, Herman Deleeck Centre for Social Policy, University of Antwerp.

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    More about this item

    Keywords

    Fairness; Well-being measure; Preferences; Non-classical goods;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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