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In: Journal of benefit-cost analysis: JBCA, S. 1-26
ISSN: 2152-2812
Abstract
The social welfare function (SWF) framework converts the possible outcomes of governmental policy choice into vectors (lists) of interpersonally comparable well-being numbers, measuring the lifetime well-being of each individual in the population of interest. The SWF proper is a rule for ranking these vectors. The utilitarian SWF adds up well-being numbers. A prioritarian SWF adds up well-being numbers plugged into a strictly increasing and strictly concave transformation function. Governmental policies are conceptualized as probability distributions over well-being vectors. A recent literature applies the SWF framework to health policy. This article first provides a brief overview of the SWF framework and then reviews some of the key concepts and findings that have emerged from this literature. One such concept is the "social value of risk reduction" (SVRR): the marginal social value (as calculated by the SWF) per unit of reduction in fatality risk for a given individual. The SVRR is the analogue, within the SWF framework, to the value-of-statistical-life (VSL) concept within benefit–cost analysis. This article explicates the SVRR concept and reports on recent theoretical findings and simulations that illustrate the properties of utilitarian and prioritarian SVRRs and their differences from VSL.
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In: The European journal of the history of economic thought, Band 29, Heft 3, S. 569-572
ISSN: 1469-5936
In: This paper is a draft of chapter 2 of Matthew D. Adler and Ole F. Norheim, eds., Prioritarianism in Practice (Cambridge University Press, Forthcoming).
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In: Duke Law School Public Law & Legal Theory Series No. 2020-40
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Working paper
In: Oxford University Press, 2019
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In: Duke Law School Public Law & Legal Theory Series No. 2017-19
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In: Journal of benefit-cost analysis: JBCA, Band 7, Heft 1, S. 196-219
ISSN: 2152-2812
Two important developments in recent policy analysis are behavioral economics and subjective-well-being (SWB) surveys. What is the connection between them? Some have suggested that behavioral economics strengthens the case for SWB surveys as a central policy tool, e.g., in the form of SWB-based cost-benefit analysis. This article reaches a different conclusion. Behavioral economics shows that individuals in their day-to-day, "System 1" behavior are not expected utility (EU-) rational – that they often fail to comply with the norms of rationality set forth by EU theory. Consider now that the standard preference-based view of individual well-being looks to individuals' rational preferences. If the findings of behavioral economics are correct, an individual's answer to a question such as "How satisfied are you with your life?" is not going to tell us much about her rational (EU-compliant) preferences. Behavioral economics, by highlighting widespread failures of EU rationality, might actually argue for an objective-good (non-preference-based) view of well-being. However (except in the limiting case of an objective-good view positing a single mentalistic good, happiness), SWB surveys will not be strong evidence of well-being in the objective-good sense. In short, SWB surveys are no "magic cure" for the genuine difficulties in inferring rational preferences and measuring well-being underscored by behavioral economics.
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Working paper
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Working paper
In: Matthew D. Adler, WELL-BEING AND FAIR DISTRIBUTION: BEYOND COST-BENEFIT ANALYSIS, Oxford University Press, 2012
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In: The Rule of Recognition and the U.S. Constitution, S. 193-234