The economic role of government as, in part, a matter of selective perception, sentiment and valuation: The cases of Pigovian and Paretian welfare economics
Sg. Medema et Wj. Samuels, The economic role of government as, in part, a matter of selective perception, sentiment and valuation: The cases of Pigovian and Paretian welfare economics, AM J ECON S, 59(1), 2000, pp. 87-108
This essay identifies and explores the role of selective perception, sentim
ent and valuation in the formation of economic policy, with particular refe
rence to the conduct of policy-making under the aegis of Pigovian and Paret
ian welfare economics. First, we identify certain background conditions. Se
cond, we present an argument with regard to the economic role of government
. Finally, we apply the argument to Pigovian and Paretian welfare economic
reasoning, showing first the equivalence of Pigovian and Paretian reasoning
under particular assumptions and their non-equivalence under more realisti
c conditions, and then how the latter results give rise to selective percep
tion, sentiment and valuation in the formation of economic policy.