discuss the basic differences in approch adopted by pigou and pareto to deal with problems of welfare economics ?....Ans at least 250 words...
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“Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being at the aggregate level.”
Pigou is known as “Father of Modern Welfare Economics”. Pigou invented Modern Public Finance policy because he always asked this question, “How government policy could increase national well-being?” Moreover, he believed that any economic development can be achieved only by government’s interventions.
Pareto uses Optimality. That is, it is probabilistically true however it does very less good to the society. He uses both ordinal and cardinal measures for welfare analysis. In Pareto’s, the scope of public finance is very less. According to Pareto, the intervention of government will do more harm than good to the society
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Pigou is known as “Father of Modern Welfare Economics”. Pigou invented Modern Public Finance policy because he always asked this question, “How government policy could increase national well-being?” Moreover, he believed that any economic development can be achieved only by government’s interventions.
Pareto uses Optimality. That is, it is probabilistically true however it does very less good to the society. He uses both ordinal and cardinal measures for welfare analysis. In Pareto’s, the scope of public finance is very less. According to Pareto, the intervention of government will do more harm than good to the society
PLEASE MAKE IT BRAINIEST
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