Abstract
“…whereas the normal way of testing a theory in positive economics is to test its conclusions, the normal way of testing a welfare proposition is to test its assumptions… The welfare cake…is so hard to taste that we must sample its ingredients before baking”‐ J. de V. Graaff, Theoretical Welfare Economics.“An economist or policy maker who wants an ultimate answer to questions involving distribution, or questions involving choices among alternatives that are not comparable under the Pareto criterion, could use an Arrow Social Welfare Function for guidance. Unfortunately, Arrow showed that…Arrow functions do not exist”‐ A. Feldman, “Welfare Econimics”, in The New Palgrave: A Dictionary of Economics.
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