A RULE FOR AGGREGATING INDIVIDUAL WELFARE MEASURES

Alberto Pench

Bulletin of Economic Research, 2009, vol. 61, issue 2, 189-193

Abstract: It is common, but often incorrect, practice in most applied works, especially in the field of applied general equilibrium models, to evaluate the overall impact of alternative policy changes by means of the sum of equivalent variations of (different classes of) individual consumers. This note proposes to use these same equivalent variations in a different way, namely, to aggregate them by the Borda rule.

Date: 2009
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https://doi.org/10.1111/j.1467-8586.2009.00304.x

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