A Note on Welfare Propositions in Economics¶
Scitovsky, T. (1941). A Note on Welfare Propositions in Economics.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Domain-specific¶
- Kaldor-Hicks Efficiency
- Tibor Scitovsky (1941) showed that if state B is Kaldor-Hicks-preferred to state A, state A may also be Kaldor-Hicks-preferred to state B once income effects from the transition are accounted for — the reversal paradox — and proposed a double test (preferred in both directions) as a remedy
This sourceScitovsky's demonstration that the compensation test can sanction both a change and its reversal, and his double criterion requiring the reverse test to fail.
Supported in partVerified against the source
- Tibor Scitovsky (1941) showed that if state B is Kaldor-Hicks-preferred to state A, state A may also be Kaldor-Hicks-preferred to state B once income effects from the transition are accounted for — the reversal paradox — and proposed a double test (preferred in both directions) as a remedy
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