Regional Welfare Weights in Investment Appraisal - The Case of India

E. Kula

Journal of Regional Analysis and Policy, 2002, vol. 32, issue 01, 16

Abstract: Pareto welfare criterion based only on people’s willingness to pay for the project’s output is regarded by many as being a narrow interpretation of an improvement in social well-being. A broader opinion is that even though poorer individuals may be less able to pay for a particular benefit, they may obtain greater utility from it. In line with the broader opinion, this paper looks at regional welfare weights in India on the basis of a conventional consumption utility function which assumes diminishing marginal utility. Estimated parameters are; elasticity of marginal utility of consumption, and per capita national and regional incomes which are used in the calculation of welfare weights for 17 states of India.

Keywords: Financial Economics; International Development (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:132234

DOI: 10.22004/ag.econ.132234

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