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Regional welfare weights

  • Erhun KULA

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    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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    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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    1. 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.
    2. 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.
    3. Blue, E. Neal & Tweeten, Luther, 1997. "The estimation of marginal utility of income for application to agricultural policy analysis," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
    4. 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).
    5. 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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