Economic Welfare

Term Paper # 100713

Economics
History
Sociology > Welfare

Economic Welfare

Discusses the definition and history of economic welfare.

11,614 words () | 34 sources | APA | 2007 United States

Paper Summary:

The purpose of this paper is to examine the meaning of economic welfare as it has evolved over time and has been interpreted by various economists throughout the years. The paper notest that, like the market, the notion of economic welfare and where it is derived from seems to fluctuate according to circumstance, as well as perception and interpretation. The paper then traces the origins of concepts of economic welfare and maps its evolution toward its current understanding in relation to management research and competitive advantage.

Outline:
Introduction
What is Economic Welfare?
Origins
Analyzing Concepts
Economic Welfare in Relation to Different Types of Economic Systems
Discussion
Conclusion

From the Paper:

"The theory of competitive general equilibrium that culminated in the Arrow-Debreu-McKenzie (ADM) model is a beautiful formalization of Smith's insight. It remains the best rationalization we have of the viability of the market system. It also provides an analytical model that is still the workhorse of many areas of economics. But in spite of its subtlety and power, the ADM model hardly does justice to the richness of Smith's vision. The decision-making framework represented by the ADM model, which we take to be the paradigm of perfect competition, reduces the whole economy to a single auction market. Although the ADM model can be interpreted as a theory of general equilibrium in a complete economy, it does not take seriously the distinction between partial and general equilibrium."

Sample of Sources Used:

Allsopp, V. (1995) Understanding economics, London: Routledge.
Arrow, K. J. and Debreu, G. (1954). Existence of an equilibrium for a competitive economy, Econometrica 22: 265-290.
Bateman, B. (1987) Keynes's changing conception of probability, Economics and Philosophy 3: 97-120.
Betz, H.K. (1988), How does the German historical school fit?, History of Political Economy, 20: 409-430.
Backhouse, R. (1985) A history of modern economic analysis. Oxford, UK: Blackwell.