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    If Kaldor-Hicks is treated as a principled extension rath... — Carmelics
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    Challenges→The Pareto principle is insufficient as the sole basis for welfare economics judgments in public policy contexts

    If Kaldor-Hicks is treated as a principled extension rather than a departure from Paretian welfare economics, the claim that Pareto reasoning is silent on most policy questions is overstated.

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    Key Terms

    Kaldor-Hicks efficiency(as used in economics and policy evaluation)
    A way to judge whether a policy is good by checking if the people who benefit could theoretically give money to those who lose and still come out ahead overall.
    Paretian welfare economics(as used in economics)
    An approach to economics named after Vilfredo Pareto that says a change is good only if it makes at least one person better off without making anyone worse off.
    Pareto reasoning(as used in policy analysis)
    Using the Pareto principle (that a change is only clearly good if nobody gets hurt) to evaluate whether policies or decisions are beneficial.
    Vilfredo Pareto(as the originator of Paretian concepts)
    An Italian economist and sociologist from the late 1800s who developed ideas about efficiency and fairness by looking at whether people's well-being can be improved without making someone else worse off.

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    principled extension(contrasted with 'trivial extension' in the statement)
    A justified and logical way to apply an idea to a new situation, based on solid reasons or consistent rules, even if it's not immediately obvious.

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    Democracy & Governance1 linkedConsequentialism1 linked

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    The Pareto principle is insufficient as the sole basis for welfare economics jud...

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