Poverty-Reducing and Welfare-Improving Marginal Public Price and Price Cap Reforms

Paul Makdissi () and Quentin Wodon ()

Journal of Public Economic Theory, 2007, vol. 9, issue 4, pages 683-698

Abstract: This paper extends familiar results on the optimal pricing of publicly provided goods and price cap regulations in a stochastic dominance framework. The key advantage is that the assessment as to whether pricing or price cap reforms are poverty reducing or welfare improving is not contingent on any given social welfare function. Rather, robust assessments of the impact of reforms can be made for wide classes of ethical judgments. Copyright 2007 Blackwell Publishing, Inc..

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