Efficiency, Equality and Public Policy: With a Case for Higher Public Spending [Hardcover]

Yew-Kwang Ng (Author)

Book Description

ISBN-10: 0333671651 | ISBN-13: 978-0333671658 | Publication Date: June 2000

This book provides a tremendous simplification in the formation of economic policies, in cost-benefit analysis in particular. It advances compelling arguments for the exclusive concern of efficiency ('a dollar is a dollar') in all specific areas of public economic policy, leaving the objective of equality to be achieved through the general tax/transfer system. Interpersonal comparisons of welfares are needed for this latter efficiency/equality trade-off. Public policies should ultimately maximize the sum of individual welfares which should be individual happiness rather than preferences. Economists overestimate the costs of public spending by emphasizing the excess burden of taxation, ignoring the offsetting effects on the spending side, the existence of environmental disruption effects and burden-free taxes on diamond goods. Relative-income effects cause a bias in favour of private consumption which is no longer conducive to social happiness.

Editorial Reviews

Review

'Kwang Ng is the leading proponent of the use of cardinal, interpersonally comparable utilities in economics. In this book he both defends their use and illustrates their application. Ng's analysis is both lucid and provocative. A fascinating journey into applied welfare economics.' - Professor Dennis Mueller, former President of the Public Choice Society and the Industrial Organization Society, USA 'Yew-Kwang Ng has been one of the most original minds studying the foundations of economic policy analysis. His work has now been brought together in one place, where the interrelations of his ideas can be most fruitfully seen. His analyses bring together the philosophical foundations and the elements of positive economic analysis to clarify the rules by which good public decisions about the economy can be made. It will have ideas new to every reader.' - Kenneth J.Arrow, Professor of Economics, Stanford University

About the Author

YEW-KWANG NG holds a personal chair in economics at Monash University and is a fellow of the Academy of Social Sciences in Australia. His main publications include Welfare Economics (1979), Mesoeconomics: A Micro-Macro Analysis (1986), Social Welfare and Economic Policy (1990), Specialization and Economic Organization (1993, with X.Yang), 'Towards Welfare Biology', Biology and Philosophy (1995), and Increasing Returns and Economic Analysis (1998, with K.Arrow and X.Yang).

Product Details

• Hardcover: 189 pages
• Publisher: Palgrave Macmillan (June 2000)
• Language: English
• ISBN-10: 0333671651
• ISBN-13: 978-0333671658
• Product Dimensions: 8.5 x 5.6 x 0.8 inches
• Shipping Weight: 14.1 ounces

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