A Positive Theory of Welfare

23 Pages Posted: 3 Dec 2009 Last revised: 4 Oct 2013

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: December 2, 2009

Abstract

This paper proves that the community indifference curve can take any shape, the welfare function has random walk, and the utility possibility curve is unlimited. This paper proposes to use profit as a new measure of welfare. It uses this new measure to derive the trade offer curve, to prove that perfect competition is very much more efficient, and to show that taxation not only causes welfare loss, but also creates unemployment. Welfare Economics becomes more positive then.

Keywords: Community Indifference Curve, Welfare Economics, Utility Possibility Curve

JEL Classification: D10, D60, D63

Suggested Citation

Choi, Hak, A Positive Theory of Welfare (December 2, 2009). Available at SSRN: https://ssrn.com/abstract=1517163 or http://dx.doi.org/10.2139/ssrn.1517163

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Chung-Hua Institution for Economic Research ( email )

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