Includes bibliographical references (pages 650-671) and indexes.
Pareto optimality and the pareto criterion -- The compensation principle and the welfare function -- Welfare measurement for the producer -- Consumer surplus and consumer welfare -- Willingness to pay and consumer welfare -- Factor supply and factor owner welfare -- Aggregation and economic welfare analysis of market-oriented policies -- Multimarket analysis and general equilibrium considerations -- The welfare economics of market structure with applications to international trade -- The welfare economics of information with applications to advertising and information policy -- Stochastic welfare economics with applications to agricultural policy analysis -- Nonmarket welfare measurement with applications to environmental economic policy -- Intertemporal considerations in cost-benefit analysis with applications to natural resource economics -- Conclusions and further considerations.
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This outstanding text, a follow-up to the authors' award-winning 1982 text, provides a thorough treatment of economic welfare theory and develops a complete theoretical and empirical framework for applied project and policy evaluation. The authors illustrate how this theory can be used to develop policy analysis from both theory and estimation in a variety of areas including: international trade, the economics of technological change, agricultural economics, the economics of information, environmental economics, and the economics of extractive and renewable natural resources.