Explore Dual Citizenship in Africa | Citizenship Benefits & Requirements
1800.pptx
1. Subject: ECONOMICS
Class: M.A.
Semester: 4
Topic:
Bergson –Samuelson Social Welfare Function
NAME OF THE PAPER:
Pricing Theory and Social Welfare
Key words: Value judgments, utility possibility frontier , social welfare function
Dr. P N Maurya
Department of Economics
Faculty of Social Sciences
Mahatma Gandhi Kashi Vidyapith
Varanasi-02
E: mail: paraskvp@mgkvp.ac.in
2.
3. The Concept Of Social Welfare Function Was Propounded
By A. Bergson In His Article ‘A Reformulation Of Certain
Aspects Of Welfare Economics’ In 1938.
Bergson –Samuelson social welfare function is an ordinal
index of society’s welfare.
It is a function of the utility levels of all individuals
Constituting the society.
4. Bergson Samuelson Social Welfare Function Can Be Presented As:
W = W ( U1, U2,U3. . . . . . . . . . . . .Un )
W represents the social welfare
U1 U2 U3 …. …. Un represents ordinal indices of the
different individuals of society.
The ordinal utility index of an individual depends upon the goods
and services he consumes and the magnitude and kind of work
he does and leisure he enjoys.
5. Propositions of Bergson - Samuelson Social Welfare Function
Paretian Concept Of Social Welfare
Individual’s own evaluation of their welfare
Explicit value judgments
6. Social Welfare Function and Value Judgment
Value judgments determine the form of the social welfare f
function.
With a different set of value judgments, the form of social
welfare function would be different.
Social welfare function is not unique.
value judgments are essentially ethical notions which are
introduced from outside economics.
Social welfare function decided through democratic process
through voting and majority rule or it is arrived at through
consensus or it may have to be imposed on society in a
dictatorial manner.
7. Features of Bergson – Samuelson Social Welfare Function
It Is Based On Explicit Value Judgments and Involves Interpersonal
Comparisons of Utility In Ordinal Terms.
The Maximum Social Welfare Position Is Determined As A Result Of The
Introduction Of Value Judgments Regarding Distribution Of Welfare
Among Individuals.
It Is Not a Unique Function But Changes With The Change In Value
Judgments.
With the imposition of SWF on Grand Utility Possibility Frontier
Maximum Social Welfare Position(Pareto Optimum) Obtained.
Pareto optimality ( grand utility possibility frontier and SWF) enables us to
find a unique optimum solution generally called the point of constrained
bliss. Both efficiency and equity are achieved which combines economic
efficiency with distributive justice.
8. REFERENCE:
Ahuja, H L (2008):Advanced Economic Theory, S Chand and company ltd.new delhi
