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Poverty‐Reducing and Welfare‐Improving Marginal Public Price and Price Cap Reforms
Author(s) -
MAKDISSI PAUL,
WODON QUENTIN
Publication year - 2007
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2007.00325.x
Subject(s) - economics , stochastic dominance , welfare , dominance (genetics) , poverty , social welfare , microeconomics , function (biology) , public economics , social welfare function , econometrics , market economy , economic growth , biochemistry , chemistry , evolutionary biology , biology , political science , law , gene
This paper extends familiar results on the optimal pricing of publicly provided goods and price cap regulations in a stochastic dominance framework. The key advantage is that the assessment as to whether pricing or price cap reforms are poverty reducing or welfare improving is not contingent on any given social welfare function. Rather, robust assessments of the impact of reforms can be made for wide classes of ethical judgments.