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A RULE FOR AGGREGATING INDIVIDUAL WELFARE MEASURES
Author(s) -
Pench Alberto
Publication year - 2009
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.2009.00304.x
Subject(s) - aggregate (composite) , economics , welfare , mathematical economics , field (mathematics) , econometrics , general equilibrium theory , microeconomics , mathematics , materials science , pure mathematics , market economy , composite material
It is common, but often incorrect, practice in most applied works, especially in the field of applied general equilibrium models, to evaluate the overall impact of alternative policy changes by means of the sum of equivalent variations of (different classes of) individual consumers. This note proposes to use these same equivalent variations in a different way, namely, to aggregate them by the Borda rule.